Credit markets are
A) bad, as they cause people to accumulate debt.
B) not important for the financial crisis.
C) important, but given too little attention in the past by macroeconomists.
D) markets that work perfectly.
C
You might also like to view...
Suppose Country A, a labor-abundant country, produces only wheat and cloth. The following equations illustrate the prices and costs of wheat and cloth in the country. The numbers indicate the amounts of labor and land needed to produce a unit of wheat and cloth. 'W' is the wage rate and 'r' is the rental rate of land.Price of wheat = 1w + 2rPrice of cloth = 2w + 1rIf the initial prices of wheat and cloth are $3 per unit, the labor cost per unit of cloth output is ________ and the rental cost per unit of cloth output is
A. $1; $2. B. $3; $1. C. $2; $1. D. $1; $3.
You study horse racing avidly and discover for this year's Kentucky Derby you think you have the field pretty well figured out. In fact, you calculate the expected return and it is the same as the expected return you are getting from the stock market. Is this investment in the race valuable to you?
What will be an ideal response?