Economists Andy Kwan and John Cotsomitis' Work Indicates the Fall

question 178

Multiple Choice

Economists Andy Kwan and John Cotsomitis' work indicates the fall in consumption spending during the 2008-2009 recession would have been caused, in large part, by

• A)lower housing wealth.
• B)higher interest rates.
• C)lower planned investment.
• D)a fall in consumer confidence.
• E)insufficient government stimulus spending.

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Definitions:

Leverage

The use of borrowed capital or debt to increase the potential return of an investment.

Potential Returns

The expected financial gains or profits that may be realized from an investment or business venture.

Startup Businesses

Newly established enterprises in the early stages of operation, typically focused on unique product or service offerings.

Cosign

To sign jointly with another or others, especially to share responsibility for a loan or lease.