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JulijaS [17]
2 years ago
8

In the early 2000s, easy credit made real estate the investment of choice in the United States. By the end of the decade, howeve

r, a recession had set in, impacting almost all businesses in the country. This example shows that _____.
Business
1 answer:
Yuliya22 [10]2 years ago
6 0

This example shows that <u>economic boom periods can overheat and lead to speculative bubbles.</u>

<u></u>

<h3><u>A Speculative Bubble: What Is It?</u></h3>

A speculative bubble is characterized by a rapid, dramatic price increase that is driven more by market momentum and mood than by underlying fundamentals.

Fundamentals like significant profit growth or hopes of future market dominance at first fuel the speculation, but these fundamentals are eventually overtaken by other factors that don't reflect the real value of the company or industry.

Prices rise when investors rush to buy, thinking that prices will rise further and that if they don't buy, an opportunity will pass them by.

Fundamentals eventually overtake momentum, the bubble bursts, the stock tanks, and prices fall back to their pre-bubble levels.

Learn more about speculative bubble with the help of the given link:

brainly.com/question/16810603?referrer=searchResults

#SPJ4

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How does the federal trade commission regulate business as an administrative agency?.
shusha [124]

The FTC is empowered to enforce rules of trade regulation that define unfair or deceptive actions or practices in great detail and to report to and advise Congress on legislative matters related to the economy. This is further explained below.

<h3>What is the federal trade commission?</h3>

Generally, The Federal Trade Commission (FTC) is a non-departmental executive body of the United States government charged with protecting consumers and enforcing federal antitrust laws.

In conclusion, The FTC is empowered to enforce laws of trade regulation that define unfair or deceptive actions or practices in great detail, and it may also report to Congress on economic matters and provide policy suggestions.

Read more about the federal trade commission

brainly.com/question/891256

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4 0
2 years ago
Which two actions should you take during an informational interview? Tell the interviewer that you would be willing to take any
storchak [24]
Speak with confidence
encourage the interviewer to do most of the talking- after all he is the interviewer, you don't want to dominate the interview
8 0
3 years ago
Read 2 more answers
Round 784.967 to the nearest whole number
ella [17]
784.967 rounded to the nearest whole number is 785
5 0
3 years ago
Read 2 more answers
San Ruiz Interiors provides design services to residential and commercial clients. The residential services produce a contributi
Sliva [168]

Answer:

If closed the operating income  will decrease by 50,000

Is a better scenario to continue with the residential sercives

Explanation:

<em><u>current scenario:</u></em>

contribution margin 450,000

Fixed Cost 480,000

net loss 30,000

<em><u>drop scenario:</u></em>

contribution margin = 0

fixed cost 450,000-370,000 = 80,000

net loss (80,000)

8 0
3 years ago
When people have insurance against a certain event, the notion that those people are less likely to guard against that event occ
sp2606 [1]

Answer: When people have insurance against a certain event, the notion that those people are less likely to guard against that event occurring is called a <u>moral hazard.</u>

Explanation: Moral hazard happens frequently in cases of insurance. If a person has a house, they can decide to install a vault because it reduces the risk of being robbed;

However, when the same person has arranged an insurance that covers the risk of theft of the house, they will have fewer incentives than in the previous situation, to install the security door and ultimately it will be able to increase the probability of the loss in this Theft case. This behavior, for example, before insurance coverage is called moral hazard.

4 0
3 years ago
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