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 112 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 :)

shailee

  • Member
  • Posts: 392
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Permafrost is found in much of Northern Canada Permafrost is found in much of Northern Canada
Development encompasses both gains and losses. Sometimes a health crisis (loss) can result in a heal Development encompasses both gains and losses. Sometimes a health crisis (loss) can result in a heal
IQ and Genetics The closer the genetic relationship, the higher the correlation in IQ. Based on: Br IQ and Genetics The closer the genetic relationship, the higher the correlation in IQ. Based on: Br
Types of kidney stones found in an adult. Types of kidney stones found in an adult.
The hemes found in cytochromes The hemes found in cytochromes
GDP per Capita in the United States, 1870–2009 GDP per Capita in the United States, 1870–2009
Video: Non-polar compounds - insolubility

For a complete list of videos, visit our video library