Suppose George buys a house worth $400,000 and his deposit (equity) is $40,000. Now suppose the house rises in value to $440,000 next year. The percentage return on Bill's equity is ________ %.

The main reason Investment in affected countries initially fell was because

Answer = 1. Chrysler needed a bailout,

2. many countries did not cut interest rates

3. many banks stopped lending to borrowers

4. firms preferred to buy gold instead

Investment did not immediately recover due to interest rates cuts because

Answer = 1. Banks preferred to fund deficits by buying Government bonds instead

2.many banks needed a bailout before they could begin lending again

3. Germany refused to bailout Greece

4. investment is not affected by interest rates