The 2008 financial crisis was caused largely by:
A. a bursting of the automobile market bubble.
B. by the inability of the government to issue Treasury bonds.
C. a run on banks and other financial institutions.
D. a bursting of the housing market bubble.
Answer: D
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Suppose the economy is initially experiencing a recessionary ga
A) a reduction in the size of the recessionary gap and increase in real GDP. B) an increase in the size of the recessionary gap and decrease in real GDP. C) an inflationary ga
Which of the following did NOT contribute to "internal economies" in the industrialization process?
(a) Diminishing returns to scale (b) Central power sources (c) Managerial improvements (d) Transportation networks
Firms that emit toxins into the air:
a. underproduce because the private cost of production exceeds the social cost. b. overproduce because the social cost of production exceeds the private cost. c. produce the same as nonpolluting firms. d. produce at the socially optimal amount.
Business firms are prohibited by law from borrowing money from banks
a. True b. False Indicate whether the statement is true or false