Other things equal, which may cause an increase in the price of used houses?
a. An increase in construction costs for new houses
b. An increase in property taxes
c. An increase in mortgage interest rates
d. A decrease in the population of first-time homebuyers
Answer: a. An increase in construction costs for new houses
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Refer to Figure 3-4. At a price of $25, how many units will be sold?
A) 400 B) 500 C) 600 D) 800
What was the thesis to James O'Neill's paper where he introduced the BRIC acronym?
A) These nations were going to collapse. B) These were failing states and thus a treat to global stability. C) These economies were moribund and needed IMF assistance. D) These nations had the potential to change global trade and capital flows. E) These nations would repeat the patterns of development and business cycles as the United States and Europe had in their economic history.
The equilibrium interest rate will change if
a. the money demand curve shifts b. there is a movement along the money demand curve c. crowding out becomes so serious that the dollar loses value d. the federal funds rate fluctuates rapidly e. Congress threatens to put a cap on interest rates
The future of the U.S as leader of the economic world:
a. is likely to continue for generations to come b. will be sustained in the next generation, but not beyond c. requires U.S. action in several critical economic areas d. requires a return of manufacturing to the U.S.