When the Federal Reserve buys $200 worth of government securities, the money supply
A) rises by $200.
B) rises by more than $200.
C) falls by $200.
D) falls by more than $200.
D
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Suppose an individual has $45,000 in annual income and considering a home that they intend to finance with a $150,000 mortgage at 4% APR 30-year fixed rate loan, the real estate taxes and insurance are $2,000 per year, auto payments are $350/month, and student loans payments are $400/month.
(1) Calculate the two qualification ratios. (2) Would this individual qualify for this loan using a standard 28/36 ratio criteria? Show all work for credit.
Christy's Haircuts, the sole supplier of haircuts in a small town, faces the demand schedule shown in the table above. What is Christy's marginal revenue from the 35th haircut?
A) zero B) -$5.00 C) $5.00 D) $12.50
Welfare caseloads tend to fluctuate with
a. business cycles. b. weather. c. stock markets. d. minimum wage rates.
There is an externality present only when
A) private costs equal social benefits. B) private benefits equal social benefits. C) private costs or benefits diverge from social costs or benefits. D) private costs equal social costs.