Each of the following can contribute to the change in the supply of loans resulting from an interest rate change, except:

A. changes in the potential of moral hazard.
B. increases in the demand for loans.
C. changes in the percentage of loan payment to income.
D. changes in borrowers' net worth.


Answer: B

Economics

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A) a shortage B) a surplus C) market equilibrium D) All of the above are possible.

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The rules of the National Collegiate Athletic Association (NCAA) limit the amount of money colleges can offer to athletes to

A) assure balanced competition on collegiate athletic fields. B) maintain high ethical standards in college sports. C) preserve the spirit of amateurism in an age of professionalism. D) prevent competition for star athletes from raising the price of enrolling them. E) prevent the schools with the most profitable athletic programs from attracting more than their share of the best athletes.

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One assumption that changes the equation of exchange into the quantity theory of money is:

A. real output varies with the money supply. B. velocity remains constant. C. price times quantity equals nominal output. D. expectations change with inflation.

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If Tom drives a car more recklessly after he purchases a comprehensive insurance plan, the change in his behavior is an adverse selection problem.

Answer the following statement true (T) or false (F)

Economics