Other things constant, a ________ in price will ________ the ________ for a good
A) decrease; decrease; demand
B) decrease; increase; demand
C) decrease; increase; quantity demanded
D) decrease; decrease; quantity demanded
C
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There is a positive relationship between two variables if
A) neither variable moves. B) they move in the same direction. C) they move in opposite directions. D) one variable changes and the other does not.
In the early 2000s, lenders began issuing mortgage loans to people who would normally not be qualified to take out loans because they did not meet lending standards. Those borrowers are known as
A) alternative borrowers. B) weak borrowers. C) subprime borrowers. D) credit risks.
The money rate of interest will be less than the real rate of interest when decision makers anticipate
a. stable prices in the future. b. falling prices in the future. c. inflation in the future. d. that the money rate of interest will decline.
Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of 15 percent. If a borrower expects that the rate of inflation next year will be 10 percent and the actual rate of inflation next year is 12 percent:
a. neither the borrower nor the lender benefits from inflation.
b. both the borrower and the lender lose from inflation.
c. the borrower benefits from inflation, while the lender loses from inflation.
d. the lender benefits from inflation, while the borrower loses from inflation.