When borrowers are unable to make their monthly mortgage payments, the value of mortgage-backed securities and collateralized debt obligations
A) falls, which pushes banks that own them closer to insolvency.
B) rises, which pushes banks that own them closer to insolvency.
C) falls; which pushes banks that own them towards greater solvency.
D) rises, which pushes banks that own them towards greater solvency.
A
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Which of the following expenditures associated with the production of a new high-performance SUV will be directly included in GDP?
A) the sale of bonds to finance the construction of the assembly plant B) the purchase of used welding robots to assemble to vehicles C) the purchase of new tires to be installed on the new vehicles D) the purchase of new machine tools to manufacture the engines
A system in which governments intervene in foreign exchange markets to limit but not eliminate exchange rate fluctuations is referred to as
A. Balance-of-payments exchange rates. B. Managed exchange rates. C. Speculative exchange rates. D. Marginal exchange rates.
To raise economic development, developing countries should
A. focus on their comparative advantage. B. produce goods that are capital intensive and not labor intensive. C. not focus on economic growth. D. focus on producing service goods.
The availability of health insurance tends to:
A. decrease the quantity of health care demanded and cause an underallocation of resources to the health care industry. B. increase the quantity of health care demanded and cause an underallocation of resources to the health care industry. C. increase the quantity of health care demanded and cause an overallocation of resources to the health care industry. D. decrease the quantity of health care demanded and cause an overallocation of resources to the health care industry.