Question
I'm using the book Macro Economics 3rd edition by Charles I. Joes Please Help me with explanation, If it is possible for you. Thank you
- I'm using the book Macro Economics 3rd edition by Charles I. Joes
- Please Help me with explanation, If it is possible for you.
- Thank you for your time
The prelude to the 2008 Financial Crisis? *
25 point
Between years 2000 and 2006, the stock market experienced unprecedented growth in prices. In 2006 the bubble burst and stock prices fell by about 71% between then and 2012.
Between years 2000 and 2006, the housing market experienced unprecedented growth in prices. In 2006 the bubble burst and housing prices fell by about 36% between then and 2012.
Between years 2000 and 2006, the stock market experienced unprecedented growth in prices. In 2006 the bubble burst and stock prices fell by about 25% between then and 2012.
Between years 2000 and 2006, the housing market experienced unprecedented growth in prices. In 2006 the bubble burst and housing prices fell by about 71% between then and 2012.
Which of the following measurements provides clear indication of lack of confidence in the creditworthiness of banks and other private companies? *
25 point
The increase in the fed funds rate.
The increase in the spread between the yield on corporate bonds and the yield on government debt.
The reduction in the spread between the yield on corporate bonds and the yield on government debt.
The reduction in short-run output.
the 2008 Recession, which government program was rolled out to clean up the balance sheets of financial institutions of "toxic" assets (i.e. mortgage-based securities)?
25points
The 2010 Affordable Care Act.
The CARES Act with a budget of $2.2 trillion.
The 2009 American Recovery and Reinvestment Act with a budget of $0.8 trillion.
The 2008 Troubled Asset Relief Program with a budget of $0.7 trillion.
Which measurements better summarize the intensity of the 2008 Recession?
25 point
Short-run output reached -16%, 20.5 million jobs were lost and the unemployment rate increased by about 13 percentage points.
Short-run output reached -7%, 8.5 million jobs were lost and the unemployment rate increased by about 5 percentage points.
Short-run output reached -12%, 5.5 million jobs were lost and the unemployment rate increased by about 10 percentage points.
Short-run output reached -3%, 2.5 million jobs were lost and the unemployment rate increased by about 3 percentage points.
Which of the factors below account for the Fed's inability to lower the cost of borrowing during the 2008 Financial Crisis? *
25 point
The discount rate remained above the fed funds rate.
The risk premium on loans to corporations increased sharply.
The risk premium on loans to the Federal government increased sharply.
The discount rate remained below the fed funds rate.
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