When the Housing Bubble Collapsed, the Entire Borrowing and Lending

question 24

Multiple Choice

When the housing bubble collapsed, the entire borrowing and lending engine of the economy ground to a halt because:

• A) no one could tell which banks were safe and which were not.
• B) banks didn't want to lend to anyone, in case they turned out to be a bad risk.
• C) investors didn't want to borrow or lend money.
• D) All of these are true.

Comprehend the focus of most leadership theory and research over the past decades.

Distinguish between different leadership theories based on their descriptive or prescriptive nature and situational applicability.

Acknowledge the evolution of leadership theories focusing on traits, skills, behavior, and the situation.

Understand the varying conceptualizations of leadership, including shared influence, specialized roles, and social influence processes.

---

Definitions:

Tax Rate Structure

Describes how tax rates progress from low to high depending on income levels, assets, or transactions, varying from progressive, regressive, or proportional.

Progressive

A taxation system in which the tax rate increases as the taxable amount increases, often applied to income tax.

Regressive

In taxation, regressive describes a tax that takes a smaller percentage of income as the income increases, often placing more burden on lower-income individuals.

Average Tax Rate

The average tax rate is the percentage of total income paid in taxes, calculated by dividing the total amount of taxes paid by the total income before taxes.