[SOLVED] Mortgage Debt Relief
Essay Question 01. Mortgage Debt Relief (20 points). Specify and explain the arguments pro and con for reducing mortgage debt during and after the 2007-2009 Great Recession. Essay Question 02. The Fusion of Two Views on the Root Cause of the Great Recession (20 points). Describe in detail how it is possible to combine or blend (i.e., to unite or merge) the banking view of the Great Recession with the levered loss view of the Great Recession. Essay Question 03. Necessary and Sufficiency Conditions (20 points). Graphically prove the following necessary condition given to us by economist Gottfried Haberler: An increasing supply of money and credit is a necessary condition for the occurrence of a long-run boom in the business cycle (10 points). Verbally derive the sufficiency condition that there is a sufficient rate of growth in the money supply and credit to establish and maintain the boom of the business cycle (5 points). What is the key assumption made in the necessary condition proof (5 points)? Essay Question 04. The Minsky Model of a Financial Crisis (20 points). Economist Hyman Minsky believed the financial system in a market economy is unstable, fragile, and prone to crisis. Explain in some detail how the financial system is unstable, fragile and prone to crisis, according to Minsky (10 points). What did the psychological term euphoria mean to Hyman Minsky? In other words, define the term as Minsky would define it (5 points). Briefly specify (but do not explain) the primary case against the market system of economic organization (5 points). Essay Question 05. Economic Consequences of an Inequality of Incomes and Wealth (20 points). A rising inequality of incomes and wealth has had two economic consequences, one, relating to secular stagnation and two, the deterioration of American education. Describe the pecuniary and non-pecuniary costs of a deteriorating American education system and how the rising inequality of incomes and wealth has helped produce secular stagnation in the American economy.
