A severe financial crisis in 2007 triggered the Great Recession. The Dodd-Frank Act was passed in 2010, intending to prevent another such crisis through tighter regulations. In the context of the aggregate demand-aggregate supply model, what is the best representation of the more stringent requirements on financial institutions? The shifts short-run aggregate supply (SRAS) curve aggregate demand (AD) curve long-run aggregate supply (LRAS) curve The law reduces the amount of confidence that investors willingness to lend. The law decreases the value of the dollar. Choc down. up. left. right. inancial markets, causing them to reduce their The law imposes additional costs on financial firms to comply with the new regulations, decreasing the ability of the financial markets to translate savings into investment. The law increases the degree of price confusion among consumers, who then defer purchases of big-ticket items.

A severe financial crisis in 2007 triggered the Great Recession. The Dodd-Frank Act was passed in 2010, intending to prevent another such crisis through tighter regulations. In the context of the aggregate demand-aggregate supply model, what is the best representation of the more stringent requirements on financial institutions? The shifts short-run aggregate supply (SRAS) curve aggregate demand (AD) curve long-run aggregate supply (LRAS) curve The law reduces the amount of confidence that investors willingness to lend. The law decreases the value of the dollar. Choc down. up. left. right. inancial markets, causing them to reduce their The law imposes additional costs on financial firms to comply with the new regulations, decreasing the ability of the financial markets to translate savings into investment. The law increases the degree of price confusion among consumers, who then defer purchases of big-ticket items.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 6CQQ

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Similar questions

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