The Figure Given Below Shows the Demand [D and D']

question 40

Multiple Choice

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-Which of the following factors led to the housing bubble in the U.S. in 2006?

• A)Increased amount of lending to subprime borrowers
• B)Decreased money supply by Federal Reserve
• C)Future expectation about downward movement of prices of the houses
• D)Federal Reserve raised the market rate of interest
• E)Increase in the supply of houses

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Definitions:

Psychosexual Development

A Freudian concept describing how personality development occurs through stages during childhood, each characterized by an erogenous zone and specific conflicts.

Compulsively Neat

Describes a person who has an overwhelming need to keep their surroundings extremely tidy, often driven by anxiety or discomfort when things are out of place.

Resistance

In free association, a blockage or refusal to disclose painful memories.

Medication

Drugs or other substances used to treat or prevent disease or relieve pain.