If mortgage brokers do not make a strong effort to evaluate whether the borrower can pay off a loan, this creates a
A) severe adverse selection problem.
B) decline in mortgage applications.
C) call to deregulate the industry.
D) decrease in the demand for houses.
A
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For the utility function U = Wa, what values of "a" correspond to being risk averse, risk neutral, and risk loving?
What will be an ideal response?
If the marginal propensity to consume = 0.75, then:
a. the marginal propensity to save = 0.75. b. the marginal propensity to save = 1.33. c. the marginal propensity to save = 0.20. d. the marginal propensity to save = 0.25. e. since the marginal propensity to save and the marginal propensity to consume are unrelated, we cannot determine the marginal propensity to save from the information given.
Microsoft is accused of which anti-competitive practice?
a. interlocking directorates b. illegal "bundling" of products c. exclusive contracts d. predatory pricing
Answer the following questions true (T) or false (F)
1. The short-run aggregate supply curve is vertical. 2. When potential GDP increases, short-run aggregate supply also increases, but long-run aggregate supply does not change. 3. An adverse supply shock causes the short-run aggregate supply curve to shift left, increasing the price level.