Which of the Following Is a Macroeconomic Factor That Contributed

question 69

Multiple Choice

Which of the following is a macroeconomic factor that contributed to the financial crisis in 2007?

• A)Global saving and investment imbalances
• B)Financial market innovation
• C)Deeper levels of integration across financial markets
• D)Challenges and failures in financial regulation

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Definitions:

Derived Demand

The need for a product or service resulting from the need for another product or service, like how the demand for cars drives the need for steel.

Final Demand

The demand for finished goods and services by consumers, businesses, and the government, excluding intermediate goods used in production.

MRP Curve

Marginal Revenue Product Curve, representing the extra revenue produced from hiring an additional unit of a resource.

MRP

Marginal Revenue Product - the additional revenue generated from employing one more unit of a resource, such as labor or capital.