During the financial crisis of 2007-2009 the interest rate on mortgage-backed securities had
a. increased and the Treasury interest rate had risen.
b. increased and the Treasury interest rate had fallen.
c. decreased and the Treasury interest rate had risen.
d. decreased and the Treasury interest rate had fallen.
b
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Which of the following is the best example of a monopolistically competitive industry?
A) land-based long distance telephone service B) wheat farming C) the local electricity producer D) manufacturing of shirts E) cable television
People eat at restaurants less often when their incomes fall because of a recession. Eating at restaurants must be
A) an inferior good. B) a normal good. C) a complement to other goods. D) a substitute for other goods. E) an inelastic good.
The unemployment rate is computed by ________
A) dividing labor force by the adult population B) dividing the number of unemployed by the adult population C) multiplying the employment ratio by the adult population D) dividing the labor force by the number of unemployed E) none of the above
The accompanying graph depicts demand.
The price elasticity of demand at point B is:
A. 3. B. 3/4. C. 4/3. D. 1/3.