According to the Authors, All of These Are Factors That

question 31

Multiple Choice

According to the authors, all of these are factors that laid the groundwork for the disaster in the United States in 2008 EXCEPT:

• A) borrowing was expensive
• B) real estate became the investment of choice
• C) mortgage originators peddled "Liar Loans"
• D) banks securitized the poison and spread it around

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Definitions:

Cost Data

Information related to the expenses incurred in the production, operation, or acquisition of goods and services.

Artificial Product Differentiation

The process by which companies make their products appear distinct from those of competitors, through branding or slight modifications, even when the core product is similar.

Concentration

The extent to which market share is dominated by a small number of companies within an industry.

Monopoly Power

The ability of a company to control or dominate an industry or market, setting prices and limiting competition due to lack of viable alternatives.