Q: A housing bubble occurs when _________ drive(s) prices more
A housing bubble occurs when _________ drive(s) prices more than fundamental factors. a) the price of gasoline b) a home’s expected future price c) interest rate changes d) property tax increases...
See AnswerQ: A bursting of a housing bubble could create more problems than the
A bursting of a housing bubble could create more problems than the NASDAQ crash in 2000 because the housing bubble involves a) assets, and NASDAQ was about debts. b) risky forms of debt. c) more pe...
See AnswerQ: Compared to a recreational user of a drug, an addicted user’s
Compared to a recreational user of a drug, an addicted user’s elasticity of demand is a) much more elastic. b) much less elastic. c) much less. d) flatter.
See AnswerQ: Using an interest rate of 5 percent, which figure has the
Using an interest rate of 5 percent, which figure has the largest present value? a) $5,000 b) $5,050 to be received two years from now c) $5,075 to be received three years from now d) $5,500 to be...
See AnswerQ: The optimization assumption suggests that people make a) irrational decisions
The optimization assumption suggests that people make a) irrational decisions. b) unpredictable decisions. c) decisions to make themselves as well off as possible. d) decisions without thinking very h...
See AnswerQ: Under perfect competition, the supply curve is a) the
Under perfect competition, the supply curve is a) the marginal cost curve for all price quantity combinations. b) the marginal cost curve, but only that portion that is downward sloping. c) the mar...
See AnswerQ: One problem with using real gross domestic product as a measure of
One problem with using real gross domestic product as a measure of social welfare is that a) it fails to count home production. b) it fails to count services, a growing part of the economy. c) it d...
See AnswerQ: An economist worrying about the economic impact of environmental regulations would model
An economist worrying about the economic impact of environmental regulations would model that impact with a a) decrease in aggregate supply. b) increase in aggregate supply. c) decrease in aggrega...
See AnswerQ: One typical response to a recession using discretionary fiscal policy is to
One typical response to a recession using discretionary fiscal policy is to a) raise taxes and cut spending. b) lower taxes and cut spending. c) raise taxes and increase spending. d) lower taxes a...
See AnswerQ: During 1999 through 2006 the Federal Reserve a) was passive
During 1999 through 2006 the Federal Reserve a) was passive and simply let things happen. b) reacted actively to quell potentially inflationary expansions but did nothing to deal with the recession...
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