The 2007 subprime crisis spread easily because
A) the United States is an important economy.
B) banks in other countries had purchased assets that depended on the U.S. housing market.
C) there was speculation against the U.S. dollar.
D) the Fed failed to act at the right time.
Question 2
Intraindustry trade is characterized by what two features of the industry and market?
A) Diseconomies of scale and homogeneous products
B) Non-tariff barriers and large-scale foreign investment
C) Quota auctions and low effective rates of protection
D) Economies of scale and differentiated products
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