If a bank offers mortgages that do not require the normal 20% down payment, the bank encourages
A) people who know they might not pay off the mortgage.
B) people who can't afford the down payment but can pay off the mortgage.
C) people who know that they are going to pay off the mortgage.
D) people who know they can't pay off the mortgage but who can afford the down payment.
A
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At present, the Social Security System
A) takes in more revenue than it spends on benefits. B) takes in less revenue than it spends on benefits. C) equates the revenue that it receives and the amount it spends on benefits. D) has no idea of just how much revenue it taking in.
If an individual's indifference curve map does not obey the assumption of a diminishing MRS, then
a. the individual will not maximize utility. b. the individual will buy none of good X. c. tangencies of indifference curves to the budget constraint may not be points of utility maximization. d. the budget constraint cannot be tangent to an appropriate indifference curve.
Although monopolistically competitive markets offer consumers a wide variety of differentiated products, there may still be insufficient variety if
a. there are large fixed costs in the market. b. there are no barriers to entry in the market. c. the business-stealing externality is present in the market. d. the government does not impose regulations on the market.
The quantity of reserves supplied increases as interest rates rise because
A. the Treasury borrows more at higher interest rates. B. consumers don’t want to borrow as much so more money is left in banks. C. as interest rates rise, banks fear losses so they decrease lending. D. banks find it more profitable to loan out excess reserves to other banks.