As the housing bubble began to collapse, the wave of initial foreclosures led to:
A. banks flooding the market with homes for sale, further depressing their price.
B. more foreclosures due to the herd instinct.
C. banks no longer offering refinancing as an option, and home sales slowed.
D. more household saving in other forms.
Answer: A
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A countervailing duty is a tariff that is levied to counteract
A) the dumping of goods in the domestic market by foreign firms. B) a sudden surge of imports which hurt a domestic industry. C) subsidies given to foreign firms by their own governments. D) the tariff on domestic goods that are enacted by foreign governments. E) low prices for imported goods that are made in countries with low wages.
Workers prefer layoffs to wage reductions during economic downturns because
A) layoffs benefit workers more than the firms. B) workers try to provide firms with incentives to report true economic conditions. C) firms will keep workers even during economic downturns to avoid more costs. D) there is symmetric information.
Increases in productivity per person lead to increases in per capita income, which we call:
A. economic growth. B. GDP per capita. C. the GDP deflator. D. the producer productivity index.
Production functions used in economic growth theory are always limited to two inputs: labor and capital
Indicate whether the statement is true or false