Regulatory policies requiring lenders to extend more low down-payment loans to higher-risk borrowers along with the Fed's low short-term interest rate policy during 2002-2004 caused
a. an increase in demand for housing and higher housing prices.
b. an increase in demand for housing and lower housing prices.
c. a reduction in demand for housing and higher housing prices.
d. a reduction in demand for housing and lower housing prices.
A
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The simplest way for a monopoly to arise is for a single firm to
a. decrease its price below its competitors' prices. b. decrease production to increase demand for its product. c. make pricing decisions jointly with other firms. d. own a key resource.
A technological advance __ the long-run aggregate supply curve and ___ the short-run aggregate supply curve.
What will be an ideal response?
Price cap regulation is a
A) price ceiling. B) price floor. C) form of marginal cost regulation. D) type of rate of return regulation.
The popular theory prior to the Great Depression that the economy will automatically adjust to achieve full employment in the long run is:
a. supply-side economics. b. Keynesian economics. c. classical economics. d. mercantilism