The two interconnected concepts that lie at the heart of many financial crises are:
A. rational expectations and leverage.
B. irrational expectations and forecasting.
C. forecasting and leverage.
D. irrational expectations and leverage.
D. irrational expectations and leverage.
You might also like to view...
The law of demand is graphically demonstrated by a(n):
a. perfectly vertical demand curve. b. perfectly horizontal demand curve. c. downward-sloping demand curve. d. upward-sloping demand curve. e. curved demand line.
The equilibrium price of a good or service is the price
a. at which the current quantity supplied by producers is equal to the potential output. b. fixed by the government so that producers do not over produce and consumers do not over purchase. c. at which all consumers can afford to purchase units of a good or service as long as they provide them with any value. d. at which the quantity supplied by producers is equal to the quantity demanded by consumers.