LINK IT UP

Visit this website (http://openstax.org/l/austerebaltic/) to read an article about how austerity can work. Then

visit this website (http://openstax.org/l/counteraustere) for another perspective on austerity.

In this chapter, we discussed the basic mechanisms of financial markets. (A more advanced course in

economics or finance will consider more sophisticated tools.) The fundamentals of those financial capital

markets remain the same: Firms are trying to raise financial capital and households are looking for a desirable

combination of rate of return, risk, and liquidity. Financial markets are society’s mechanisms for bringing

together these forces of demand and supply.
428 17 • Financial Markets

BRING IT HOME

The Housing Bubble and the Financial Crisis of 2007
The housing boom and bust in the United States, and the resulting multi-trillion-dollar decline in home equity, began
{"file_size_mb": 26.99, "moddate": "2022-12-07T14:23:05-06:00", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "total_pages": 597, "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "upload_timestamp": "2026-02-07T15:37:44.339247", "file_type": ".pdf", "batch_upload": true, "creator": "PDFMiner", "title": "Principles of Microeconomics 3e", "uploaded_via": "batch_uploader", "file_name": "Microeconomics3e.pdf", "creationdate": "2022-12-07T14:15:44-06:00", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "producer": "Prince 14.2 (www.princexml.com)"}