What was the original stated purpose of Fannie Mae and Freddie Mac?
a. to allow the government to extend loans directly to low-income and minority households
b. to help provide liquidity in the secondary mortgage markets
c. to operate as non-profit entities that would provide competition for for-profit mortgage companies
d. to take on mortgages going into default in order to prevent them from going into foreclosure
B
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Suppose that in a country people gain more confidence in the banking system and so hold relatively less currency and more deposits. As a result, bank reserves will
a. decrease and the money supply will eventually decrease. b. decrease and the money supply will eventually increase. c. increase and the money supply will eventually decrease. d. increase and the money supply will eventually increase.
As inflation rates increase, money becomes less useful as a:
A. unit of account. B. store of value. C. medium of exchange. D. double coincidence of wants.
Suppose that because of unseasonably cold weather in California, a significant portion of the orange crop has been lost to freezing temperatures. This statement means that
A. the amount of oranges available at various prices will decline. B. the demand for oranges will rise. C. the price of oranges will fall. D. the equilibrium quantity of oranges will rise.
When the marginal product of labor is a maximum, the average product of labor is ________
A) a maximum B) increasing C) decreasing D) equal to marginal product