Which of the following was not a typical characteristic of subprime mortgages?
a. low down payments
b. loans to borrowers with poor credit histories
c. limited incomes with which to make loan payments
d. fixed interest rates
d
You might also like to view...
Proponents of the new classical macroeconomics do not believe which of the following?
A) Wages and prices will adjust rapidly in the economy. B) Workers and firms use information contained in Fed policy to form inflation expectations. C) The economy will normally be at its potential level. D) Expansionary monetary policy can be an effective policy tool.
Suppose k = 0.25. With a $10 billion decrease in the money supply, the LM curve shifts
A) to the left by $40 billion. B) to the left by $4 billion. C) to the left by $2.5 billion. D) to the right by $0.25 billion.
When a consumer wants to compare the price of one product with another, money is primarily functioning as a:
A. unit of account. B. medium of exchange. C. checkable deposit. D. store of value.
Inflation is measured using ________ in a price index.
A. the percentage year-to-year increase B. the absolute increase C. logarithm adjusted absolute increase D. a multi-year weighted average increase