Between 1992 and 2012, the percentage of students borrowing to pay for college
A. remained constant at 30%.
B. decreased from 73% to 58%.
C. increased from 34% to 57%.
D. decreased from 18% to 13%.
Answer: C
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Lower U.S. interest rates cause the value of the dollar to
A) fall, making U.S. goods relatively more expensive on world markets. B) fall, making U.S. goods relatively cheaper on world markets. C) rise, making U.S. goods relatively more expensive on world markets. D) rise, making U.S. goods relatively cheaper on world markets.
If the United States imposes a tariff on $1 per imported shirt, the tariff will
A) raise the price of a shirt to U.S. consumers. B) benefit U.S. shirt producers. C) decrease imports of shirts into the United States. D) all of the above
The strategy whereby a firm makes most of its own inputs is called:
A. economies of scope. B. horizontal integration. C. economies of scale. D. vertical integration.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. The real risk-free interest rate falls, and nominal value of the domestic currency rises. c. The real risk-free interest rate rises, and nominal value of the domestic currency rises. d. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same. e. The real risk-free interest rate falls, and nominal value of the domestic currency falls.