In events leading to the housing bubble, the credit-rating agencies rated the assets associated with the housing market proper:
A. AAA ratings indicating low risk, and turned out to be too optimistic.
B. AAA ratings indicating low risk, but turned out to be a right judgment.
C. mid-level ratings indicating moderate risk, but were ignored.
D. mid-level ratings indicating moderate risk, and turned out to be too pessimistic.
Answer: A
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Using the data in the table above, the growth rate of real GDP for 2010 is equal to
A) 4.76 percent. B) 10.0 percent. C) 9.09 percent. D) 5.00 percent. E) 7.00 percent.
The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) always equals:
A. 1. B. 0. C. the interest rate. D. the marginal propensity to invest (MPI).
Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. After the federal marketing order in 1987, why were the California kiwifruit more likely to be sweet?
A. The federal order required a minimum maturity standard. B. The federal order required that California kiwifruit farmers take lessons from New Zealand farmers. C. The trees were still young in 1987 started to get older and produced better fruit. D. The federal order required that sweet California kiwifruit must be sold only in California.
The U.S. dollar will appreciate if
a. the U.S. demand for foreign exchange decreases b. the U.S. demand for foreign exchange increases c. the U.S. supply of foreign exchange decreases d. Americans want to buy more foreign goods e. foreigners want fewer American goods