Multiple Choice
Which of these was NOT a factor leading to the financial crisis of 2007-2009?
A) Low interest rates encouraged a housing boom.
B) Policymakers underestimated the level of risk inherent in the mortgage market.
C) The public lacked faith in the ability of the U.S. Treasury to pay government bonds.
D) Investors borrowed heavily to purchase securitized mortgages.
Correct Answer:

Verified
Correct Answer:
Verified
Q238: Increased outsourcing by U.S. companies has contributed
Q239: If wages rise by 3% and productivity
Q240: Which company did the Federal Reserve and
Q241: The natural rate of unemployment is<br>A) the
Q242: Suppose policymakers want to keep the unemployment
Q244: The main practical difference between the rational
Q245: The simultaneous occurrence of rising inflation and
Q246: The cost of financing U.S. government debt
Q247: Suppose the Federal Reserve announces that its
Q248: One implication of the long-run Phillips curve