A – Using the IS-LM curves explain in detail and show a) how and
why the drop in housing prices caused a major financial crisis in
2008, then how the 2008 financial crisis transformed into a major
economic crisis and crashed the economy. b) What would have
happened if FED employed a set of monetary policies opposite of
those we saw during the recession. Discuss their impact on the
economy, output, interest rates, and consumption and investment
expenditures. c) What...