Which of the following accurately describes the relationship between mortgage default rates and the 2008 recession?
a. The recession of 2008 triggered the initial increase in the mortgage default rate.
b. The rise in the mortgage default rate preceded the recession and it was a major cause of the 2008 economic downturn.
c. Both the increase in the mortgage default rate and the economic recession were the result of the stock market crash of 2008.
d. The rise in the mortgage default rate and the economic recession were separate issues and there was no relationship between the two.
B
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The figure above shows the market for coffee. When the efficient quantity of coffee is produced, the marginal social cost of the last pound is
A) $2.50. B) $3.50. C) $3.00. D) $2.00.
In a steady-state economy with no population growth, output per worker is 35, the saving rate is 20 percent, and the depreciation rate is 11 percent. The level of capital per worker is ________
A) 64 B) 19 C) 39 D) 28
A congressman states, "If a government attempts to increase employment through increased government spending, all we will end up with is a higher price level." This congressman assumes that the
A) aggregate demand curve is a horizontal line. B) aggregate demand curve is a vertical line. C) aggregate supply curve is a horizontal line. D) aggregate supply curve is a vertical line.
If the aggregate supply curve is upward-sloping, then the short-run effect of an increase in the money supply is an increase in both real output and the price level
Indicate whether the statement is true or false