The increase in the share of loans extended to borrowers with little or no down payment contributed to the financial crisis of 2008 because these loans
a. initially depressed housing prices.
b. were extended only to borrowers with prime credit status.
c. had much higher default rates than loans to borrowers making larger down payments.
d. were unavailable to low-income borrowers, who would have profited the most from such loans.
C
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Suppose a farmer is a price taker for soybean sales with cost functions given by TC = .1q2 + 2q + 30 MC = .2q + 2 If P = 6 the profit-maximizing level of profits is
a. 10 b. 20 c. 30 d. ?10
Which group (or groups) would be the most upset by wide variation in the income distribution?
a. utilitarians b. utilitarians and liberals c. libertarians d. liberals and libertarians
Which of the following is true if the total variable cost curve is rising?
a. Average fixed cost is increasing. b. Average fixed cost is constant. c. Marginal cost is decreasing. d. Marginal cost is increasing.
The distinguishing characteristic of labor market monopsonies is the fact that
A. They can hire any number of workers they want without affecting the market wage. B. They must usually hire unionized workers. C. They can pay any wage they want for the number of workers they need. D. Their hiring decisions directly affect the market wage rate.