One of the most significant factors causing the recession of 2007-2009 was
A. very low interest rates maintained by the Federal Reserve.
B. the bursting of the housing bubble.
C. the huge federal government budget surplus.
D. very low, crude oil prices.
Answer: B
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Suppose a monopolist has marginal cost of zero but recurring fixed costs. Then the monopolist will produce the efficient level of output so long as he can first degree price discriminate.
Answer the following statement true (T) or false (F)
Marginal social cost is made up of marginal private cost and incidental cost
a. True b. False Indicate whether the statement is true or false
Using the rule of 70, if the GDP per capita growth rate in the United States is 3.5 percent, real GDP per capita doubles every:
A. 20 years. B. 24.5 years. C. 35 years. D. 70 years.
In the Keynesian model in the long run, a decrease in the money supply will cause
A. a decrease in output and an increase in the real interest rate. B. a decrease in the real interest rate and a decrease in output. C. an increase in the real interest rate but no change in output. D. no change in either the real interest rate or output.