Read the articles on the Federal Reserve Bank of St. Louis website regarding subprime mortgage lending crisis
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Question:
Read the articles on the Federal Reserve Bank of St. Louis website regarding subprime mortgage lending crisis and monetary policy.
Write a paper in which you need to address the following:
What was the impact of the subprime lending crisis on the U.S. macro economy?
How has the interest rate on loans been affected by problems in the subprime lending market? Explain why this effect is expected to occur.
How would this change in interest rates affect equilibrium GDP? Explain why this change would occur
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5th edition
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
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