Which of the Following Statements Factors Contributed to the 2007-2009

question 96

Multiple Choice

Which of the following statements factors contributed to the 2007-2009 financial crisis?

• A)The cultural shift that allowed the public to "spend now and pay later"-rather than their parents' or grandparents' philosophy of "save now, spend later" led to increases in consumer debt levels.
• B)U.S.government officials engaged in efforts to expand home ownership by encouraging lenders to make mortgage loans available to a broader spectrum of individuals.
• C)Federal fiscal policy also became simulative, with increased government spending and the passage of tax cuts in 2002.
• D)The Federal Reserve adopted an expansionary monetary policy characterized by very low interest rates.
• E)all of the above.

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Definitions:

Profit Requirement

The minimum level of earnings necessary for a business to sustain its operations or fulfill its financial goals.

Profit Mark-Up

The percentage added to the cost of goods to arrive at the selling price.

Target Selling Prices

The intended price at which a company aims to sell its products, often determined by market conditions and cost considerations.

Target Cost

The desired cost of a product derived from its expected selling price and desired profit.