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babunello [35]
3 years ago
9

The 2008 credit crunch occurred when banks reduced lending in response toa the loss of asset value for mortgage-backed securitie

s and mortgage loans.b having too little capital to satisfy capital requirements.c an excess of bank capital.d an increase in the required reserve ratio.
Business
1 answer:
rjkz [21]3 years ago
6 0

Answer:

The correct answer is option a.

Explanation:

In 2007-2009 financial crisis occurred globally which originated in the US. It was triggered in the US because of the collapse of the housing bubble which caused the price of houses to decline.  

The housing bubble was backed by mortgages securities. The percentage of lower quality or subprime mortgages increase around 2004-06.  

This reduction in the asset value for mortgage securities caused the banks to reduce their lending as the debts on consumers and businesses were increasing.  

This caused the credit crunch in the year 2008.  

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A very small country's gross domestic product is $12 million.
Alekssandra [29.7K]

Answer:

The amount of net exports of goods and services is -$1 million.

Explanation:

The gross domestic product (GDP) is equal to the total value of the products and services that are produced in a country in a specific period of time. In this case, we will have that GDP would be:

GDP= I+G+NX

I= investment

G= government expenditure

NX= net exports

Then, we replace the formula and isolate NX:

$12=$5.5+$7.5+NX

NX= $12-$5.5-$7.5

NX= -$1

4 0
3 years ago
A bank developed a model for predicting the average checking and savings account balance as balance = -17,732 + 367 * age +1300
Ann [662]
We are given with the equation
<span>balance = -17,732 + 367 * age +1300 *years education + 0.116 * household wealth

</span>-17,732 is a constant amount credited from the savings acount
367 is the amount saved per year of age
1300 is the amount saved per year of education
0.116 is the amount save per household wealth
6 0
2 years ago
For a person to keep his real income steady at a certain level from one year to the next, his nominal income must Multiple Choic
Solnce55 [7]

Answer:

3. fall if the price index rises.

Explanation:

  • According to the nominal income, the inflation is a one of the major factors that decrease the amount of the goods and the services that would be afforded with a given amount of the nominal incomes thus if the person wants to keep this real income steady for the next year's nominal income may fall as the increase of the inflation in the economy.  And can erode the nominal income gains.
4 0
2 years ago
What are the two facets of a mode of production according to E.K. Hunt? Define them.
pentagon [3]

Answer:

They are forces of production and social relations of production.

Explanation:

In Marxism and historical materialism the forces of production are a central idea. In the own critique of political economy by Karl Marx and Frederick Engels, it refers to the combination of the means of labor with human labor power.

forces of production is a term used in political economy that refers to the physical means and production techniques to which laborers add value and transform capital into saleable products.

By " relations of production," Marx and Engels meant the total sum of social relationships that people have to enter to survive, produce, and reproduce their means of living...relations can be social ties, economic relationships, or technological relationships.

3 0
3 years ago
Creative task performance involves employee responses to task demands that are novel, unusual, or, at the very least, unpredicta
VladimirAG [237]

Answer:

False

Explanation:

Creative task performance represents the degree or extent to to which persons or employees come up with original, new and usual responses to task demands. That part of the question is true.

However, the false part is the unpredictability aspect because adaptive task performance is the type of performance which is also unusual, new and original but is at the very least unpredictable.

The question therefore combined the features of both creative and adaptive task performances. Therefore, the answer is false

8 0
3 years ago
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