Higher education subsidies in the form of the federal government's student loan program
a. induce more people to attend colleges and universities.
b. keep interest rates low on student loans.
c. cause lenders to take on more risk.
d. All of the above are correct.
d
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The opportunity cost and the money cost of a good
A. can be the same in a well-functioning free market. B. are never the same. C. matter only to the purchaser of the good. D. are not reflected in its price.
If Fred's marginal utility of pizza equals 10 and his marginal utility of salad equals 2, then
A) he would give up 5 pizzas to get the next salad. B) he would give up 5 salads to get the next pizza. C) he will eat five times as much pizza as salad. D) he will eat five times as much salad as pizza.
The U.S. has the biggest national economy in the world solely because of the U.S. population
a. True b. False Indicate whether the statement is true or false
An increase in interest rates affects aggregate demand by
A. Shifting the aggregate demand curve to the right, increasing real GDP and lowering the price level B. Shifting the aggregate demand curve to the left, reducing real GDP and lowering the price level C. Shifting the aggregate supply curve to the left, decreasing real GDP and increasing the price level