Essay
Your uncle is pleased to hear you are taking macroeconomics; this whole financial crisis puzzled him. He was not happy about "bailing" out the banks. He is pretty good with graphs, so do not be afraid to use them to explain the following:
a. How does the rapid decline of the housing market and the subprime implosion affect the macroeconomy?
b. And why, pray tell, would we bail out the banks? Aren't there potential long-run problems with doing this?
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a. First, the decline in the housing mar...View Answer
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Correct Answer:
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