In addition to keeping interest rates too low for too long, the Fed also:
A. overestimated the importance of the housing sector for the whole economy.
B. kept government spending too high for too long in the years leading up to the recession.
C. ran too great of a budget surplus in the years leading up to the recession.
D. underestimated the impact of a decline in the housing sector on the whole economy.
Answer: D. underestimated the impact of a decline in the housing sector on the whole economy.
You might also like to view...
What two conditions must be present for a cartel to work?
What will be an ideal response?
Refer to the accompanying table. The marginal utility of the 3rd dinner is:Number of DinnersOut Per WeekTotal UtilityMarginal Utility1100 2 753235 4250
A. 160. B. 60. C. 75. D. 135.
In the former Soviet Union,
A. the collective farms were more productive per acre than the private plots of land owned by peasants. B. there was no private ownership of any farmland. C. the private plots of land were more productive per acre than the large collective farms. D. the land under cultivation was equally split between private plots of land and the collective farms.
Answer the following statements true (T) or false (F)
1. The asymmetric information problem in health care implies that the demand for health care is a "supplier-induced demand". 2. The moral hazard problem created by health insurance induces consumers to under consume health care. 3. Health insurance induces the consumers to adopt less prevention and over consumption of health care. 4. The provision of health insurance leads to a dead weight loss due to an over-allocation of resources to health care. 5. Raising deductibles and co-payments in health insurance plans is one effective way to contain health care costs.