Subprime Mortgages Are the Leading Cause of the 2007-2008 Financial

question 63

True/False

Subprime mortgages are the leading cause of the 2007-2008 financial crisis in the US.

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Definitions:

Explicit Cost

Direct, out-of-pocket payments for expenses incurred in business operations, such as wages, rent, and materials.

Monetary Cost

The amount of money that must be paid or spent to acquire goods, services, or assets.

Implicit Cost

The opportunity costs that arise from using assets, resources, or funds in specific ways rather than the next best alternative.

Capital

The total value of assets owned by an individual or firm—physical assets plus financial assets.