What is the default risk premium, and why did it dramatically increase during the 20072009 recession? How

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What is the default risk premium, and why did it dramatically increase during the 2007–2009 recession? How did this increase affect the MP curve and the output gap?

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Money, Banking, and the Financial System

ISBN: 978-0134524061

3rd edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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