What are "cash-out refinancings"?
What will be an ideal response?
When interest rates fall, homeowners with an existing mortgage lower their interest rate and increase the size of their mortgage, taking the difference as a cash payout. These are called "cash-out refinancings."
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The expansionary monetary and fiscal policies of the 1960s resulted in ________ inflation rates and ________ rates of unemployment
A) high; high B) low; high C) high; low D) low; low
If elasticity of demand is 1.8, elasticity of supply is 0.7, and a 20 percent excise tax is levied on the good:
A. the tax burden on consumers will be greater. B. the tax burden on suppliers will be greater. C. the tax burden will be the same for both. D. one cannot say who will bear the greater burden without knowing the tax.
Unanticipated inflation benefits
A. people with CDs (certificates of deposits) in the bank. B. people or businesses who owe funds. C. people who live on a fixed income. D. people or businesses who lend funds.
An increase in the income of country A relative to the income of country B will usually lead to an increase in country:
A. A's exports to country B B. B's imports from country A C. A's demand for the currency of country B D. B's demand for the currency of country A