Unlike the traditional mortgage amortization schedule, "negative-amortization" mortgages permit the
A. value of the house to depreciate during the early years of the mortgage.
B. outstanding balance to increase over a part of the life of the mortgage.
C. principal payments to grow at a constant rate during the early years of the mortgage.
D. mortgage payments to exceed the accrued interest during the early years of the mortgage.
Answer: B
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A person experiences a capital gain if she
A) sells an asset for more than what she paid for it. B) settles a debt. C) invests in a physical capital project. D) contributes to a country's production of capital goods.
Disequilibrium in the money market is mainly corrected via a change in
A. the price level. B. saving levels. C. bond prices. D. the money supply.
In the above figure, if aggregate demand does not change, the short-run equilibrium will
A) eventually adjust to a long-run equilibrium with a higher price level. B) not adjust on its own. C) eventually adjust to a long-run equilibrium with a lower price level. D) None of the above answers are correct.
Which of the follow is not a property of the aggregate demand curve?
A. It shows the relationship between the overall price level and the level of total demand. B. The aggregate demand curve slopes downward. C. It shows the relationship between the overall price level and level consumption. D. It shows the price level on the vertical axis and output on the horizontal axis.