Problem 3: During of the financial crisis and Great Recession, many home owners in the United States are said to be underwater: the value of their real estate fell below the value of their mortgage. Suppose that Laura, a home owner, had a positive wealth in 2008. In 2009, unfortunately, her wealth is negative. Does this evidence necessarily imply that Laura dissaved over 2009? Explain. (Hint: Think about endogenous and exogenous factors of wealth accommodation.) Problem 4: Is it possible that a country gets wealthier despite running a CA deficit? Explain.
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UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
Problem 3- During of the financial crisis and Great Recession- many ho.docx
1. Problem 3: During of the financial crisis and Great Recession, many home owners in the United
States are said to be underwater: the value of their real estate fell below the value of their
mortgage. Suppose that Laura, a home owner, had a positive wealth in 2008. In 2009,
unfortunately, her wealth is negative. Does this evidence necessarily imply that Laura dissaved
over 2009? Explain. (Hint: Think about endogenous and exogenous factors of wealth
accommodation.) Problem 4: Is it possible that a country gets wealthier despite running a CA
deficit? Explain.
