Which of the following statements is false?
A) In 2006, some people with subprime and other nontraditional loans were not able to make their monthly payments on their mortgage loans.
B) The leverage ratio is the ratio of assets to capital.
C) John Taylor argued that the global savings glut was the reason for the low interest rates in the early-2000s and for the rise in housing prices that followed.
D) It is possible for a bank to have the value of its liabilities greater than the value of its assets.
E) none of the above
C
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An increase in a consumer's income creates a
A) rightward parallel shift of the budget line. B) leftward parallel shift of the budget line. C) rightward rotation of the budget line, so that the budget line becomes steeper. D) leftward rotation of the budget line, so that the budget line becomes steeper.
Hong Kong chooses to have ________ and ________ and therefore, cannot have an independent monetary policy at the same time
A) capital control; a fixed exchange rate B) free capital mobility; a fixed exchange rate C) free capital mobility; a flexible exchange rate D) capital control; a flexible exchange rate
Between the two ordered pairs (3, 6) and (7, 18), the slope is
a. 1/3 b. -1/3. c. 3. d. -3.
If the current allocation of resources in the market for wallpaper is efficient, then it must be the case that
a. producer surplus equals consumer surplus in the market for wallpaper. b. the market for wallpaper is in equilibrium. c. on the last unit of wallpaper that was produced and sold, the value to buyers exceeded the cost to sellers. d. All of the above are correct.