Being "underwater" in one's home mortgage means that the market value of one's house had fallen below:
A. Its value the previous year
B. What is owed in the mortgage loan
C. The purchase price
D. The average home price in the neighborhood
B. What is owed in the mortgage loan
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Which of the following is most appropriately measured along one axis of the production possibilities frontier diagram?
a. the quantity of a produced good b. the price of a produced good c. the quantity of natural resources d. the state of technology e. society's welfare and satisfaction
Explain some important situations where direct controls have a clear advantage over taxes
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real exchange rate and monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium. Assume the nominal exchange rate
is stated as: (Domestic currency per foreign currency). a. The real exchange rate rises and monetary base rises. b. The real exchange rate rises and monetary base falls. c. The real exchange rate and monetary base fall. d. The real exchange rate and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The sacrifice ratio is the
a. sum of the inflation and unemployment rates. b. inflation rate divided by the unemployment rate. c. number of percentage points annual output falls for each percentage point reduction in inflation. d. number of percentage points unemployment rises for each percentage point reduction in inflation.