To reassure investors who were unwilling to buy mortgages in the secondary market, the U.S. Congress used two government sponsored enterprises, Fannie Mae and Freddie Mac, to stand between investors and banks that grant mortgages
Fannie Mae and Freddie Mac
A) sell bonds to investors and use the funds to purchase mortgages from banks.
B) sell bonds to banks and use the funds to purchase mortgages from investors.
C) sell mortgages to banks and use the funds to purchase bonds from investors.
D) sell mortgages to investors and use the funds to purchase bonds from banks.
A
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In the short run, a firm has fixed costs but never any variable costs
a. True b. False Indicate whether the statement is true or false
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the nominal exchange rate and monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The nominal exchange rate rises and monetary base rises. b. The nominal exchange rate rises and monetary base falls. c. The nominal exchange rate and monetary base fall. d. The nominal exchange rate and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
If the minimum reserve ratio is 20 percent, then $1 of reserves can support a maximum of $10 more in transactions deposits.
Answer the following statement true (T) or false (F)
"Market prices give no reason to believe that natural resources are a limit to economic growth.". Explain this statement