A financial crisis is:
A. a sharp increase in asset prices that prevents new investors from being able to afford to purchase assets.
B. a gradual decline in the value of a country's currency that leads to a prolonged economic downturn.
C. a sharp decline in asset prices that forces borrowers to sell off additional assets, further depressing prices.
D. a sharp drop in the unemployment rate, leading to hyperinflation.
Answer: C
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Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment
What price will the Busy Bee charge to maximize its profit? A) $5.00 for a hamburger B) $3.00 for a hamburger C) $2.00 for a hamburger D) $1.00 for a hamburger E) $4.00 for a hamburger
The two types of trade, intertemporal and pure asset swap ________ perfect substitutes, because ________
A) are; they both offer considerable payoff and are equal in the long run B) are; they both involve the smoothing out of now and future consumption C) are not; asset swapping is immediate and involves only assets, while intertemporal trade takes two time periods and involves both assets and goods/services D) could possibly be; different economic states occur at different points in time E) are not; asset swapping never relates to intertemporal trade