When housing prices began to decline after their peak in 2006, many subprime borrowers found that their mortgages were "underwater." This meant that
A) the value of the house fell below the amount of the mortgage.
B) the basement flooded since they could not afford to fix the leaky plumbing.
C) the roof leaked during a rainstorm.
D) the amount that they owed on their mortgage was less than the value of their house.
A
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Which of the following is most likely to happen as the result of lower real interest rates in the United States?
a. the dollar will depreciate on the foreign exchange market and imports will grow relative to exports. b. the dollar will appreciate on the foreign exchange market, and exports will grow relative to imports. c. the dollar will depreciate on the foreign exchange market, and exports will grow relative to imports. d. the dollar will appreciate on the foreign exchange market, and imports will grow relative to exports.
If the CPI was 228 at the end of 2007 and 236 at the end of 2008, what was the inflation rate in 2008?
A) 236 percent B) 3.5 percent C) 8 percent D) 4 percent E) 3.4 percent
Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?
A. A decrease in demand B. A decrease in supply C. An increase in demand D. An increase in supply
According to your textbook,
A) millions of people know how to make pencils, but only a few know how to use them. B) millions of people know how to make pencils, but nobody knows how to use them. C) no single person anywhere in the world knows how to make a pencil. D) no single person anywhere in the world knows how to use a pencil. E) none of the above.