Which of the following is true?
A)As confidence grows, spending units rely less on borrowed funds and reduce their debt-to-income ratios.
B)The mixture of hedge, speculative, and Ponzi spending units determines the overall health of the economy.
C)National wealth includes financial liabilities.
D)Speculative spending units are more at risk than Ponzi spending units.

Question

Quizplus · Accepted Answer

The mixture of hedge, speculative, and Ponzi spending units, as described by Hyman Minsky's financial instability hypothesis, determines the overall health of the economy.

Which of the Following Is True