Question Completion Status: have no impact on Share or bond prices cause mortgage rates to fall, QUESTION 7 In the graph above, an economy moves from point A to B after being hit by a shock. if the Central Bank wants to keep the unemployment rate at its natural level, what action should take? Lower interest rates. Raise interest rates. Decrease the money supply None of the above QUESTIONS Which of the following is a key reason why banks might be too big to fail? The bank cannot fail because there will always be new depositors. The bank has so many shareholders that it will always be bailed in The bank's balance sheet is large enough that it can sustain significant losses and still continue operating The bank makes such a large profit that it cannot go bankrupt. The bank going bankrupt would result in an undesirable social outcome. QUESTION 9