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When the Effects of the Subprime Crisis Started to Spread

question 59

Multiple Choice

When the effects of the subprime crisis started to spread more quickly throughout the rest of the world,the U.S.dollar ________ because demand for U.S.assets ________.


Definitions:

MRP of Land

The marginal revenue product of land refers to the additional revenue earned from the use of an extra unit of land, holding other factors constant.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.

Marginal Physical Product

The additional output that is produced by employing one more unit of an input, holding other inputs constant.

Substitution Effect

The economic understanding that as prices rise, or income decreases, consumers will replace more expensive items with less costly alternatives.

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