Briefly describe the economic conditions that contributed to the severe recession of 2007–2009.
What will be an ideal response?
There was excessive money growth that contributed to the rise in housing prices and overvaluation of that sector of the economy. The burst of prices in the housing market and resulting defaults in the mortgage market created substantial financial instability because some financial investments were based on the value of mortgages. The instability created a freeze in credit markets that reduced consumer and business confidence and lead to reduced spending by businesses and households.
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If the Japanese buy more Cadillacs, they __________ more yen and __________ more dollars in the foreign exchange market
A) supply; supply B) supply; demand C) demand; supply D) demand; demand
More education guarantees a higher income and escaping poverty
Indicate whether the statement is true or false
To maximize its profit, a monopoly should choose a price where demand is:
A. elastic. B. inelastic. C. unitary elastic. D. vertical.
The period of time from 1,000,000 B.C. to 1300 A.D. was a period of
A) moderate economic growth. B) rapid and sustained economic growth. C) no sustained economic growth. D) slow and steady economic growth.