In events leading to the housing bubble, the credit-rating agencies rated the assets associated with the housing market proper:
A. mid-level ratings indicating moderate risk, but were ignored.
B. AAA ratings indicating low risk, but turned out to be a right judgment.
C. AAA ratings indicating low risk, and turned out to be too optimistic.
D. mid-level ratings indicating moderate risk, and turned out to be too pessimistic.
C. AAA ratings indicating low risk, and turned out to be too optimistic.
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If net exports decrease by 250 and the mpc is 0.75, equilibrium aggregate output
A) increases by 1000. B) increases by 750. C) decreases by 750. D) decreases by 1000.
An important feature of representative democracy is the incentive and political power it offers participants to employ legislation to increase their wealth, either through direct transfers or through favorable public expenditures and regulations. Such benefits are called ________ , and the activity that interest groups undertake to elicit these special favors is called ________
a. taxes; tax-seeking b. dividends; portfolio management c. rents; rent-seeking d. interest; investment
In behavioral economics, salience is best exemplified by
A) consumers responding differently when posted prices increase rather than when prices increase because of sales tax increases. B) consumers responding the same regardless of how prices change. C) the end of a controlled experiment. D) consumers responding differently when income increases permanently rather than temporarily.
According to Karl Marx, surplus value is created when the capitalist _________________.
Fill in the blank(s) with the appropriate word(s).