If the price of a good increases by one thousandth of 1% and the quantity demanded goes to zero, then at that price, the good is
A. perfectly inelastic.
B. perfectly elastic.
C. inelastic.
D. non-responsive.
Answer: B
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Refer to Figure 9.7. After the policy was implemented, the quantity traded became
A) 1000. B) 2000. C) 3000. D) 4000. E) between 2000 and 4000, but the amount depends upon producers' reactions, which are uncertain.
During the Great Recession, securitization:
a. Was a major problem because it prohibited mortgage originators from reducing their underwriting mistakes by shifting them investors. b.Was one of the only sources of relief for investors who were suffering heavy losses on their mortgage investments. c. Was a major cause of the moral hazard problem. d. None of the above.
If the government sets out to make home buying easier for more people by forcing lenders to accept ____________ down payments and ______________ interest rates, the result will likely be a(n) _______________ in housing prices
A) lower; lower; increase B) higher; higher; increase C) lower; higher; decrease D) higher; lower; decrease
The Fed’s loan that effectively nationalized AIG was approved by Congress.
Answer the following statement true (T) or false (F)