The analysis in Chapter 15 implies that the housing bubble of the last decade would likely have been avoided if
A) the Fed had pursued a monetary equilibrium policy as opposed to cheap interest rate policies.
B) people weren't as greedy as they were during the beginning and middle of the bubble.
C) price controls were established to keep home prices from rising as high as they did.
D) markets were better regulated.
A
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The aggregate expenditure line is drawn on a graph that measures:
a. real GDP on the horizontal axis and aggregate expenditure on the vertical axis. b. aggregate expenditure on the horizontal axis and real GDP on the vertical axis. c. consumption on the horizontal axis and aggregate expenditure on the vertical axis. d. aggregate expenditure on the horizontal axis and consumption on the vertical axis. e. investment on the horizontal axis and aggregate expenditure on the vertical axis.
If top managers make good decisions, the firm's profits will be ________, and the firms assets will be ________
A) high; small relative to its liabilities. B) high; large relative to its liabilities. C) equal to its revenues; small relative to its liabilities. D) low; large relative to its liabilities