The new lax lending requirement and low interest rates drove housing prices higher
What will be an ideal response?
which only made the mortgage backed securities and CDOS seems like an even better investment.
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When a country has flexible exchange rates the:
a. Capital account must be equal to and carry the opposite sign of the financial account b. Reserves account must be positive. c. Reserves account must be negative. d. Current account must equal the reserves account. e. None of the above.
Bank examiners are _____.
(A) More interested in regulating the overall money supply than the net worth of member banks. (B) Required to schedule with banks when they plan to visit. (C) Authorized to force banks to sell off investments that they consider excessively risky. (D) Only permitted to label a bank as a "problem bank" if the institution has excessive risks.
With respect to the classical labor market analysis, it is not assumed that
a. firms have complete information with respect to relevant prices. b. workers negotiate for unique wages individually. c. money wages adjust with a short lag. d. All of the above e. None of the above
Intense market competition is ________ for producers, since it_______
a. Bad; erode consumer surplus b. Bad, erode producer profits c. Good, increase the price level in the market d. Good; decrease the price level in the market