How did the actions the Fed took on interest rates in 2005–2006 affect people with adjustable-rate mortgages?
a. Their payments decreased.
b. Their payments increased.
c. The government assumed their payments.
d. Their payments could not be changed.
b. Their payments increased.
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If the nominal interest rate is 10 percent, the inflation rate is 6 percent, and the tax rate on interest income is 25 percent, what is the after-tax real interest rate?
A) 1.5 percent B) 4.0 percent C) 3.0 percent D) 6.0 percent E) 3.5 percent
Refer to the figure above. What is the consumer surplus before Barylia opens up to free trade?
A) $250 B) $300 C) $350 D) $400
For a common resource, the marginal private cost curve slopes ________ and the marginal social cost curve slopes ________
A) upward; upward B) upward; downward C) downward; upward D) downward; downward
Provide two examples of economics being used as a tool by each of a student, a business, and a government. Classify your examples as dealing with microeconomic topics and macroeconomic topics
What will be an ideal response?