After reports of the subprime mortgage crisis began to appear in the media, which of the following most likely caused housing prices to fall?
a. neoclassical theory
b. cyclical expectations
c. rational expectations
d. Keynesian theory
c. rational expectations
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For a natural monopoly to exist
A) a firm must continually buy up its rivals. B) a firm must have a government-imposed barrier. C) a firm's long-run average cost curve must exhibit diseconomies of scale beyond the economically efficient output level. D) a firm's long-run average cost curve must exhibit economies of scale throughout the relevant range of market demand.
With which choice are you more likely to avoid Bid-rigging cartels?
a. Holding smaller auctions b. Holding larger auctions c. Holding frequent auctions d. Both B&C
Which of the following is a basic point that Keynes made about consumption?
A) Consumption and disposal income are inversely related. B) When disposable income changes, consumption changes by a greater amount. C) Consumption is dependent upon disposable income. D) b and c E) all of the above
Explain the money multiplier and give two examples showing how much money could be generated from a single deposit. For each example, be sure to include the initial deposit amount, the reserve requirement ratio, the excess reserve amount, the money multiplier, and the potential total amount of money generated, rounding to the nearest tenth at each step.
What will be an ideal response?