Test Bank Law, Business and Society 12th Edition By Tony McAdams A+
- From Business, General Business
- NUMBER1TUTOR
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Description
1) The American financial community's near collapse in late 2008 was most directly ignited by the government's flooding the market with cash.
Answer: FALSE
Explanation: The American financial community's near collapse in 2008 was most directly ignited by the subprime mortgage crisis; a situation in which the nation's housing bubble burst and millions of Americans were no longer able to pay their home mortgages. Instead of continuing their sometimes meteoric rise in value, those homes had plunged in price and much of the total real estate market had essentially imploded.
Difficulty: 1 Easy
Topic: Capitalism: Reduce Government?
Learning Objective: 01-01 Describe capitalism and its relationship to individual rights.