According to Gordon, all of the following are important ingredients in the recent U.S. housing bubble EXCEPT

In order to determine a household's budget line, you must know the

A) prices of the goods bought and the household's income. B) prices of the goods bought, but not the household's income. C) household's income, but not the prices of goods bought. D) household's income, prices of the goods bought, and the household's preferences.

A firm's net worth is equal to the value of its

A) assets minus the value of its liabilities. B) liabilities minus the value of its assets. C) common stock minus the value of its outstanding bonds. D) outstanding bonds minus the value of its common stock.