Answer all.

(a)What direction did the 2009 fiscal stimulus package cause the IS curve to shift? After the policy was implemented, did output and unemployment increase? If the fiscal stimulus package had not been implemented, would the IS curve have shifted more to the left, or right? Include any citations at the end of your exam paper.

(b)"A decline in autonomous planned investment spending causes the equilibrium level of aggregate output to fall and shifts the LM curve to the right, everything else held constant". Is this statement true or false? Explain your answer.

(c)This question refers to the "P2P Lending at a Crossroads" case study that was assigned reading for Week 10. The case is on the SurreyLearn website. The case describes two P2P business models - the guaranteed return model and the notary model. For each of these business models, describe how information asymmetry problems such as moral hazard and adverse selection may arise, and how the problems can be mitigated. No outside citations are necessary. That is, please restrict your answer to the information provided in the case study.

Home - Cara Question 1 6 pts A firm has the following probability distribution for annual losses due to vandalism Annual Loss Probability .6 $ 5,000 .3 $ 8,000 .1 The firm is now considering only two options: 1. Deductible insurance, Face amount = $8,000, Deductible = $1,000, Premium = $2,000 2. Partial insurance, Face amount = $6,000, Premium = $2,250 Question 1. Fill in the payout matrix from an insurer's perspective. State of the World Loss = $0 Loss = $5,000 Loss = $8,000 Deductible Insurance 0 Partial Insurance 0 Question 2. What is the actuarially fair premium (AFP) for deductible insurance? Please insert your answer in the blank below:QUESTION 2 Risk management decision rules used by producers will vary considerably depending on the situation. True False QUESTION 3 Personal risks can be minimized through all of the following except: O Having a backup management plan O Implementing safety precautions O Spreading sales Life insurance QUESTION 4 Crop insurance can help reduce production risk. O True False QUESTION 5 Sell-liquidating loans can be used to manage price risk True FalseWhich of the following is not a current asset? Marketable securities Material inventory Unearned rent income Prepaid interest Accrued insurance Question 9 (1 point) If a parent has some control over a subsidiary but the subsidiary is not consolidated, the subsidiary is accounted for as: la marketable security. an investment. a liability. a fixed asset. None of the answers are correct.Question 8 options: Universal life insurance Whole life insurance Term life insurance Custodial life insurance Question 9 (2 points) Which is NOT a potentially adverse factor that could diminish any estate? Question 9 options: Administration expenses Trusts that transfer property after the deaths of both spouses Forced liquidation Termination of employment Question 10 (2 points) Which is NOT a common method of reducing the gross estate? Question 10 options: Life insurance Trusts that do not avoid multiple taxation Gifts made during the donor's lifetime Special power of appointment