Why were many loans in the early 2000s referred to as subprime?
a. The interest rate on them was lower than the prime rate.
b. The borrowers who used them had less than prime credit.
c. The houses they were used to buy cost less than prime real estate.
d. The loan officers who made them received less than a prime commission.
b. The borrowers who used them had less than prime credit.
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Answer the following statement(s) true (T) or false (F)
1. A firm seeks to product at a point where an isocost is tangent to a isoquant. 2. Cost minimization requires that the marginal product of labor equal the marginal product of capital. 3. A point on the firm's expansion path both minimizes the cost of producing a given output level and maximizes the output obtained for a given expenditure level. 4. All points on the expansion path have the same marginal rate of technical substitution. 5. In the long run there is no distinction between average cost and average variable cost.
In the period 1950-2011, the inflation rate in the U.S. CPI has
A) varied very little. B) been less variable than the inflation rate in the GDP price deflator. C) been more variable than the inflation rate in the GDP price deflator. D) been substantially equal to the inflation rate in the GDP price deflator every year.
Recall this discussion from the text. The supply of 20-year-old French wine has a price elasticity of supply of
a. 1.00 b. -1.0 c. 0 d. infinity e. 20
Which group has a direct responsibility for providing analysis, advice, and assistance to the U.S. president on economic matters?
A. The Congressional Budget Office B. The Joint Economic Committee C. The Council of Economic Advisors D. The Federal Reserve Board