When people became less concerned with the underlying value of their houses and instead focused on the expectations of the prices of their houses increasing, ________ occurred
A) stagflation
B) an automatic destabilizer
C) a housing bubble
D) a supply shock
Answer: C
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The idea that governments can plan growth by setting industrial policies to encourage growth of certain industries:
A. is a proven method for economic growth. B. is controversial. C. has worked for the majority of countries that have tried it. D. None of these is true.
Crowding out refers to the effect that:
A. C and I are indirectly affected by changes in G. B. C is directly affected by changes in G. C. C and I are directly affected by changes in G. D. C and I are completely unrelated to changes in G.
Which of the following is an exogenous variable in the Three-Sector-Model?
a. Real GDP b. GDP price index c. Required reserve ratio d. Quantity of real credit per time period e. Quantity of currency per time period
If the price of pork chops falls from $8 to $6, and this leads to an increase in demand for apple sauce from 100 to 140 jars, what is the cross-price elasticity of apple sauce and pork chops at a pork chop price of $6?
A. -1.17 B. 2.71 C. 0.42 D. -0.86