Explain How the Financial Collapse of 2008 Occurred in the United

question 23

Essay

Explain how the financial collapse of 2008 occurred in the United States,focusing on the role played by private sector financial institutions.

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Definitions:

Expected Marginal Benefit

is the anticipated additional benefit or utility obtained from consuming one more unit of a good or service.

Rational Decision Maker

An individual or entity that makes decisions by systematically considering the available information, alternatives, and potential outcomes.

Economic Theory

A set of principles and methodologies that economists use to understand, explain, and make predictions about economic processes and behaviors.

Economist's Main Professional Objective

The primary goal of economists is to understand how economies operate and to develop strategies or policies to improve economic welfare and efficiency.