When housing prices fell as they did beginning in 2006 following the housing market bubble, most banks and other lenders ________ the requirement for borrowers, making it ________ for potential home buyers to obtain mortgages
A) tightened; harder B) eased; easier C) eased; harder D) tightened; easier
A
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Which one of the following could cause a recessionary gap?
A. Interest rates are too low. B. Consumers spend more than they earn. C. Price levels are too high. D. Businesses spend more than they save.
In the above figure, if the real interest rate is 6 percent, the quantity of loanable funds demanded is
A) $150 billion. B) $300 billion. C) $450 billion. D) $600 billion.
If the inflation rate is negative, the price level in an economy is
A) falling. B) rising slowly. C) constant. D) rising rapidly.
Differences among nations in real economic growth rates, real interest rates, and inflation rates will each affect the exchange rates among their currencies
a. True b. False Indicate whether the statement is true or false