Consider the short-run model (IS-MP-PC). Suppose now that because of a cyberattack, the computer systems holding the accounting information of the main banks in the United States lose unknown amounts of information. As a result, there is widespread uncertainty about the composition of the balance sheets of banks, and this leads to an increase in the risk premium associated with borrowing and lending among banks. In the short-run model, which curve would shift?
The PC curve will shift up.
The IS curve will shift to the left.
The MP curve will shift up.
The PC curve will shift down.