Which type of borrowers were least likely to default in their mortgage at the beginning of the financial crisis?
A) those with fixed-rate mortgages who made large down payments
B) those with alt-A loans
C) subprime borrowers
D) those with adjustable-rate mortgages
A
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Refer to the figure above. What is the equilibrium rate of interest when the credit demand curve is CD2 and the credit supply curve is CS1?
A) 3% B) 4% C) 5% D) 2%
An increase in the equilibrium price and a decrease in the equilibrium quantity can be the result of
A) a decrease in demand. B) an increase in supply. C) a decrease in supply. D) an increase in demand. E) None of the above.
If the total budget deficit is $200 billion and the deficit at full employment is $120 billion, then the
A. Structural deficit is $80 billion. B. Cyclical deficit is $120 billion. C. Cyclical deficit is $80 billion. D. Structural deficit is $320 billion.
Which one of the following does NOT appear to contribute to economic growth?
A) knowledge B) a system of well-defined property rights C) protectionism D) innovation