Loan decisions made by both individuals and banks contribute greatly to the macroeconomy. Since everyone participates in the macroeconomy at large everyone is in some way tied together in terms of the ability to get and control credit. From this perspective many banks were willing to loan money to individuals based on the assumption that even if they couldn't make the payment the increase in house values would be enough to cover any potential losses. The issue arose when too much credit was extended, housing slowed and then there was little demand for new houses. This started a cascade of issues in the macroeconomy in terms of a housing bubble, an end to easy credit and a situation in which individuals and banks both had to be bailed out in order to prevent a complete collapse of the macroeconomy as a whole.
While private bankers made the loans there are also individuals that take loans that they know they can't repay or don't plan for situations in which they can't make a payment if something were to go wrong in terms of their job or a family issues that may arise. For this reason individuals are also responsible at a microlevel for the problems created at the macro level as a whole for the economy. Such borrowing had to end immediately to stave off future failures of banks who may not have had the liquidity and solid financial backing to survive such a predicament.
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Answer: If an economy's gross domestic product falls(GDP), it must be the case that the economy's income and saving falls.
Explanation:
Gross Domestic Product (GDP) is used to calculate the total market value of every finished goods and services that are produced within a country's borders at a particular period of time. Gross domestic product functions as the comprehensive scorecard of the economic health of a country measuring the overall domestic production of that particular economy.
When there is a fall in a country's gross domestic product, there will have been a fall on the country's income and savings. A lower income will bring about a reduction in the gross domestic product. Since higher income leads to higher savings and lower income is also proportional to lower savings, it therefore follows that a reduction in gross domestic product will be as a result of fall in income and savings.
Answer:
Nepal is a nation located in the Himalayan Mountains, bordering India and China, being a kind of buffer nation between both powers.
Given its location, it does not have access to the sea, which makes maritime transport impossible. In addition, the rivers that pass through its territory are at such an altitude that river transport is impossible.
On the other hand, its mountainous location makes the construction of routes that connect the nation with its neighbors complex, since they must avoid the highest mountains on the planet in a few kilometers of range. Even so, some routes cross the country from east to west, delivering Nepalese products to China and India.
This makes air transport the most effective within Nepalese territory, where there are some 44 airports located, the most important being that of its capital, Kathmandu.
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