Exam 1 Eco 212 Spring 2024 1) U.S. housing policies are the root cause of the...

Transcribed Image Text:

Exam 1 Eco 212 Spring 2024 1) "U.S. housing policies are the root cause of the current financial crisis. Other players---- greedy investment bankers, foolish investors, imprudent bankers, incompetent rating agencies, irresponsible housing speculators, shortsighted homeowners, and predatory mortgage bankers, lenders, and borrowers---- all played a part. However, they only followed the economic incentives that government policy laid out for them." (Peter Wallison). According to this quote by Wallison, the central actor responsible for the 2008 financial crisis was: a) The investment banking industry b) The rating agency industry c) The government d) The army of housing speculators 2) The demographic transition refers to: a) The increase in fertility rates and the number of children per family that many societies undergo as they transition from urban centers to farmland. b) The increase in fertility rates and the number of children per family that many societies undergo as they transition from rural to urban centers. c) The decrease in fertility rates and the number of children per family that many societies undergo as they transition from rural to urban centers. d) The decrease in fertility rates and the number of children per family that many societies undergo as they transition from urban centers to rural locations. 3) Based on the Malthusian economy graphical analysis (the graph can be found in Blackboard), if the technological relationship shifts inward, reflecting a lower level of technology (for example, the expulsion of the Jews from Spain in the fifteenth century deprived the economy of a substantial amount of know-how). Then, the consequences of the new equilibrium would be: a) The level of the Spanish population decreased b) Same income per capita c) Higher level of the Spanish population d) Lower income per capita e) a) and b) 1 Exam 1 Eco 212 Spring 2024 1) "U.S. housing policies are the root cause of the current financial crisis. Other players---- greedy investment bankers, foolish investors, imprudent bankers, incompetent rating agencies, irresponsible housing speculators, shortsighted homeowners, and predatory mortgage bankers, lenders, and borrowers---- all played a part. However, they only followed the economic incentives that government policy laid out for them." (Peter Wallison). According to this quote by Wallison, the central actor responsible for the 2008 financial crisis was: a) The investment banking industry b) The rating agency industry c) The government d) The army of housing speculators 2) The demographic transition refers to: a) The increase in fertility rates and the number of children per family that many societies undergo as they transition from urban centers to farmland. b) The increase in fertility rates and the number of children per family that many societies undergo as they transition from rural to urban centers. c) The decrease in fertility rates and the number of children per family that many societies undergo as they transition from rural to urban centers. d) The decrease in fertility rates and the number of children per family that many societies undergo as they transition from urban centers to rural locations. 3) Based on the Malthusian economy graphical analysis (the graph can be found in Blackboard), if the technological relationship shifts inward, reflecting a lower level of technology (for example, the expulsion of the Jews from Spain in the fifteenth century deprived the economy of a substantial amount of know-how). Then, the consequences of the new equilibrium would be: a) The level of the Spanish population decreased b) Same income per capita c) Higher level of the Spanish population d) Lower income per capita e) a) and b) 1

Answer rating: 100% (QA)

According to the quote by Wallison the central actor responsible for the 2008 financial crisis was ... View the full answer