試題詳解

2. Many borrowers defaulted on subprime mortgages ultimately disrupting financial markets by August 2007. Which of the following is a likely result of this increase in financial frictions?
(A) The AD curve likely shifted left which caused a positive inflation gap.
(B) The AD curve likely shifted right which caused a positive inflation gap.
(C) The AD curve likely shifted left which caused an upward movement along the MP curve to a higher general equilibrium interest rate.
(D) none of the above