Question: Explain the 2007 sub-prime crisis using the short-term OA and DA model, including the following stages: a) Initial fall in investment b) Zero interest rate

Explain the 2007 sub-prime crisis using the short-term OA and DA model, including the following stages:

a) Initial fall in investment

b) Zero interest rate limit

c) Deflation situation, Recovery

d) The role of the bank Central and Fiscal Policy

e) The European Case

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