Why did rising housing prices from 2001 to 2006 encourage lenders to give mortgages even to people they thought would default?
a. Lenders felt the government would pay for any losses they suffered from defaults.
b. Lenders felt credit was so easy to obtain that customers in default could easily get more financing.
c. Lenders felt that if borrowers defaulted that would leave the lenders with houses that were worth more than they had been owed.
d. Lenders felt that regulations would soon change to help people facing foreclosure and prevent defaults.
c. Lenders felt that if borrowers defaulted that would leave the lenders with houses that were worth more than they had been owed.
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Reformulated gasoline
a. refers specifically to ethanol (10) b. includes enhanced oxygen to enhance combustion c. refers to formulations that release less hydrocarbons, toxics, and CO than conventional gasoline d. includes large amounts of MTBE
After a $3 per-unit tax on seeing movies in theaters is imposed, attendance falls from 4,000 a week to 3,000 a week. The revenue from the tax is
A) less than $9,000 a week. B) $9,000 a week. C) between $9,000 a week and $12,000 a week. D) some amount that cannot be calculated without more information.
During the beginning on the global financial crisis in the United States when the effects of the crisis were mostly confined within the United States, the U. S. dollar ________ because demand for U.S. assets ________
A) appreciated; increased B) depreciated; increased C) appreciated; decreased D) depreciated; decreased
When an aggregate demand shock hits the economy ________
A) there is no conflict for the central bank between pursuing price or output stability because of the divine coincidence B) the same long-run equilibrium real interest rate is reached whether the central bank intervenes or not C) the long-run level of output is unaffected D) all of the above E) none of the above