This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: During the 2007-2009 financial crisis, many households found themselves with debts to repay. How ... (Read 41 times)

soccerdreamer_17

  • Hero Member
  • *****
  • Posts: 552
on: Jun 30, 2018
During the 2007-2009 financial crisis, many households found themselves with debts to repay. How might this explain the consumer response to the 2008 Tax Rebate?
 
  What will be an ideal response?

Question 2

Tobin's q is the ratio of the
 
  A) dividend payments of a firm to the current stock price of the firm.
  B) market value of a firm to the replacement cost of its capital.
  C) current stock price of a firm to the number of outstanding shares of stock in the firm.
  D) current stock price of a firm to the total earnings of the firm.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

triiciiaa

  • Sr. Member
  • ****
  • Posts: 349
Reply #1 on: Jun 30, 2018
Answer to Question 1

The temporary tax rebate did not add much to permanent income, so it's no surprise that most of the money was not added to current spending. However, the immediate reduction in household debt increases lifetime resources. Generally, the cost of debt service is higher than the expected return on saving, so permanent income rose further and gave some boost to current consumption.

Answer to Question 2

B


soccerdreamer_17

  • Member
  • Posts: 552
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

upturnedfurball

  • Member
  • Posts: 334
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

In 2007, primatologists studying chimpanzees in Senegal reported something amazing; chimpanzees were In 2007, primatologists studying chimpanzees in Senegal reported something amazing; chimpanzees were
A spider from the genus Selenops, which have been found to be able to glide thro A spider from the genus Selenops, which have been found to be able to glide thro
Rule of Law and Factor Accumulation, 2009 Rule of Law and Factor Accumulation, 2009
Role of Factors of Production in Determining Output per Worker, 2009 Role of Factors of Production in Determining Output per Worker, 2009
GDP and Capital per Worker, 2009 GDP and Capital per Worker, 2009
Video: Hormones and the menstrual cycle Animation

For a complete list of videos, visit our video library