Regulatory policies requiring lenders to extend more low down-payment loans to higher-risk borrowers along with the Fed's low short-term interest rate policy during 2002-2004 caused
What will be an ideal response?
mal-investment, that is, excessive investment in housing construction during 2002-2005.
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An economy that has no interaction with the rest of the world is called
A) an isolated economy. B) a closed economy. C) a parochial economy. D) a rogue nation.
Describe the three stages of economic analysis.
What will be an ideal response?
The Black Death in fourteenth-century Europe resulted in
a. a lower marginal product of land. b. a lower marginal product of labor of surviving workers. c. economic hardship for surviving peasants. d. economic prosperity for surviving landowners.
A cyclical deficit is the portion of the deficit that exists when:
A. the economy is at potential income. B. inflation is fully anticipated. C. inflation is not fully anticipated. D. the economy is below potential income.