All of the Following May Have Contributed to the Financial

question 21

Multiple Choice

All of the following may have contributed to the financial crisis and economic downturn of 2008-2009 except:

• A) high inflation.
• B) low interest rates.
• C) stock market volatility.
• D) falling house prices.

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Definitions:

Equilibrium Quantity

is the quantity of goods or services supplied and demanded at the equilibrium price, where market demand equals market supply.

Price Floor

A price floor is a government-imposed limit on how low a price can be charged for a commodity, typically implemented to protect producers' income.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific time period.

Quantity Demanded

The specific amount of a good or service that consumers are willing to buy at a given price.