In 2008-2009,which of the Following Weakened the Demand Stimulus Effects
In 2008-2009,which of the following weakened the demand stimulus effects of expansionary fiscal policy?
A)the unwillingness of the federal government to run budget deficits
B)the heavy indebtedness of American households
C)a high level of household spending on big-ticket items such as houses and cars,which do not promote economic growth
D)the continuation of the high saving rates on the part of Americans
Which of the following is most central to the understanding of the economic crisis of 2008?
A)the decline of the stock market in late 2007
B)the housing boom (2001-2005)and bust (2007-2008)
C)the sharp rise in oil prices in 2008
D)unethical investment practices beginning in 2000
The mortgage default rate is
A)the percentage of home mortgage loans in which the borrower has failed to make the current monthly payment.
B)equal to the foreclosure rate.
C)the percentage of home mortgages in which the borrower is 90 days or more late with the payment or it is in the foreclosure process.
D)the percentage of home mortgages in which the borrower owes more than the home is worth.
During 1979-2005,the mortgage default rate
A)was less than the foreclosure rate.
B)soared to more than 5 percent during recessions but declined sharply during economic expansions.
C)soared to more than 5 percent during expansions but declined sharply during economic recessions.
D)was generally between 1 and 2 percent.