One reason the housing bubble occurred is because:
A. the recency effect caused homes to typically be undervalued.
B. the herd instinct caused everyone to believe home prices would continue to fall.
C. securitization removed much of the risk from the sellers of subprime mortgages.
D. All of these statements are true.
C. securitization removed much of the risk from the sellers of subprime mortgages.
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Refer to Figure 5-15. The current market equilibrium output is partly the result of overfishing. In that case, what does S1 represent?
A) the social marginal cost of harvesting salmon B) the social marginal benefit of harvesting salmon C) the private marginal cost of harvesting salmon D) the private marginal benefit of harvesting salmon
Fiscal policy is the use of government spending and taxation to make changes in the level of national income
Indicate whether the statement is true or false
The two main approaches to measuring GDP are the
A. income approach and the expenditure approach. B. government approach and the consumer approach. C. flow approach and the stock approach. D. concept approach and the reality approach.
The achievement of full employment through time will:
A. diminish labor productivity. B. reduce the level of investment as a percentage of GDP. C. increase the realized rate of economic growth. D. have no impact on the rate of economic growth.