When someone takes out a mortgage loan to buy a house, the mortgage lender can take possession of the house and sell it if the borrower defaults on the loan because the house is being pledged as ________ for the loan
A) goodwill
B) a liability
C) insurance
D) collateral
Answer: D
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The debit side of the current account includes the imports of
a. goods only b. goods and services c. services only d. services and resources only e. financial assets
From the standpoint of the economy as a whole, the role of insurance is to greatly reduce or eliminate the risks inherent in life
a. True b. False Indicate whether the statement is true or false
If two firms comprise the entire soft drink market, the market would be a(n)
a. Nash equilibrium. b. monopolistically competitive market. c. oligopolistically competitive market. d. duopoly.
Suppose that the central bank increases interest rates in an economy. How would this affect aggregate demand and inflation?
A) Aggregate demand would fall and inflation would rise. B) Aggregate demand would fall and inflation would fall. C) Aggregate demand would rise and inflation would rise. D) Aggregate demand would rise and inflation would fall.