Refer to the graph below and suppose that the economy begins in long-run equilibrium. Which point best represents the new outcome when banks' capital requirements rise? 4.5% 3% 1.5% b a d (c) (a): -2% (e) 0% (b) (d) 2% LM
Refer to the graph below and suppose that the economy begins in long-run equilibrium. Which point best represents the new outcome when banks' capital requirements rise? 4.5% 3% 1.5% b a d (c) (a): -2% (e) 0% (b) (d) 2% LM
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 3CQQ
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Transcribed Image Text:Refer to the graph below and suppose that the economy begins in long-run equilibrium. Which point
best represents the new outcome when banks' capital requirements rise?
4.5%
3%
1.5%
●
b
·
a
d
(c)
(a)
-2%
0%
(b)
(d)
2%
LM
la
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