The financial crisis of 2008 showed that:
A) models can be used in all cases to understand financial assets.
B) homeowners were able to pay their mortgages reliably.
C) a faulty economic model can have devastating macroeconomic consequences.
D) the average price of a house should not increase.
Correct Answer:
Verified
Q7: The financial meltdown of 2008-2009:
A)was accurately predicted
Q8: A simplified representation that is used to
Q9: The models used in economics:
A)are always limited
Q10: Before 2000,the mortgage-backed securities market was relatively
Q11: A mortgage-backed security is an asset that:
A)only
Q13: The importance of an economic model is
Q14: Use the following to answer question:
Q15: Use the following to answer question:
Q16: Economic models are:
A)set up and used to
Q17: The models that economists construct:
A)usually make simplifying
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