For the Following Questions Refer to Figure 14

question 63

Multiple Choice

For the following questions refer to Figure 14.3 below.
-The effect of the subprime loan crisis pushed the __________.In Figure 14.3,this is shown as a movement from point __________ to __________.

• A)inflation rate down;c;d
• B)long-run real interest rate down;c;b
• C)risk premium up;c;d
• D)market real interest rate down;a;b
• E)unemployment rate up;c;d

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Definitions:

Gun

A weapon that discharges projectiles such as bullets or shells through a barrel by the force of an explosive or other form of propulsion.

Contract

A legally binding agreement between two or more parties with mutual obligations.

Void

Describes a contract or legal agreement that lacks validity and enforceability from the outset.

Economic Duress

Coercion involving threats to a person’s business or financial condition that compel the person to act against their will in entering a contract.