Suppose that lenders believe that the government will provide assistance if too many of the lenders' borrowers do not pay back their loans. If lenders expect government assistance they will:
A. make more loans to borrowers who are less likely to repay them.
B. make fewer loans to borrowers who are less likely to repay them.
C. increase the interest rates that they charge borrowers who are less likely to repay loans.
D. not change their lending policies because this expectation is not reasonable.
Answer: A
You might also like to view...
According to the equation of exchange, an increase in either velocity or the money supply will
a. cause PQ to rise. b. not affect the price level. c. cause the price level to fall. d. cause PQ to fall.
China has 20 percent of the world's population and 10 percent of the world's farmable land. Which of the following will be predicted by the Heckscher-Ohlin theory if China begins to trade with other countries?
A. China will export capital-intensive goods like automobiles and import labor-intensive goods like clothing. B. China will export land-intensive goods like wheat and import labor-intensive goods like clothing. C. China will shift resources into the production of agricultural goods and away from manufactured goods. D. China will shift resources from the production of agricultural goods to the production of labor-intensive goods.
In the above table, what is the marginal revenue product of the 1st worker?
A. $400 B. $920 C. $80 D. $700
Answer the following statements true (T) or false (F)
1) The WTO is comprised of 28 European nations. 2) The current, ongoing round of trade negotiations in the World Trade Organization is called the Doha Round. 3) The European Union (EU) is a free trade zone comprising all the nations of eastern and western Europe. 4) France, Germany, and Italy are all members of the eurozone. 5) NAFTA is an international accord that will eliminate all tariffs and quotas worldwide by the year 2025.