Businesses are as vulnerable as individuals to the economic upswings and downturns of a nation’s economy. Savvy business leaders understand how to see the economic trends, as well as how those trends will affect the business.
There are two parts to this assessment. Be sure to complete both parts before submitting.
- Explain how each of the following relate to the financial crisis of 2007–2008:
- Declines in real estate values.
- Subprime mortgage loans.
- Mortgage-backed securities.
- Analyze what economists mean when they say that monetary policy can exhibit cyclical asymmetry.
- How does the idea of a liquidity trap relate to cyclical asymmetry?
- Why is the possibility of a liquidity trap significant to policymakers?
Organize your assessment logically with appropriate headings and subheadings. Support your work with at least 3 scholarly or professional resources and follow APA guidelines for your citations and references. Be sure to include a title page and reference page.
- Include a title page and reference page.
- Number of pages: 3–4, not including title page and reference page.
- Number of resources: At least 3.
- APA format for citations and references.
- Font and spacing: Times New Roman, 12 point; double-spaced.