Securitization:
A. turns many loans into a single larger asset.
B. is an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest.
C. is a promise by the bond issuer to repay the loan, at a specified maturity date, and to pay periodic interest at a specific percentage rate.
D. turns many loans into a risk-free secure asset.
A. turns many loans into a single larger asset.
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If urbanization in a nation keeps increasing, GDP per capita in the nation is likely to:
A) initially increase then decrease after urbanization reaches a certain threshold. B) keep decreasing. C) initially decrease then increase after urbanization reaches a certain threshold. D) keep increasing.
The "free-rider problem" of public goods refers to a. individuals' refusal to pay taxes
b. individuals' attempts to hide their preferences for collective goods and to avoid paying for them. c. individuals' overuse of collective goods. d. the inelasticity of individuals' demands for public goods.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
The optimal bid for an individual participating in a first-price, sealed-bid auction with independent private values is to bid:
A. less than the individual's valuation of the item. B. There is not an optimal bid strategy for all individuals when independent private values exist. C. exactly the individual's valuation of the item. D. more than the individual's valuation of the item.