What is one reason for the high interest rates for home loans offered to those with low credit ratings?
A) Predatory lending practices
B) Those with lower credit ratings faced a restricted supply of loans, ceteris paribus.
C) Those with lower credit ratings typically demand greater loans, ceteris paribus.
D) Government regulation
B
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What is Moore's Law?
What will be an ideal response?
The government's budget constraint is best represented by which of the following equations?
A) Government purchases of goods and services + Transfer payments + Interest payments on existing debt = Tax revenue + Newly issued government bonds + Seigniorage B) Government purchases of goods and services + Transfer payments + Tax revenue = Interest payments on existing debt + Newly issued government bonds + Seigniorage C) Tax revenue - Transfer payments = Government purchases of goods and services + Interest payments on existing debt + Newly issued government bonds + Seigniorage D) Government purchases of goods and services + Newly issued government bonds + Interest payments on existing debt = Transfer payments + Tax revenue + Seigniorage
A price taker is a buyer or seller who:
A. has complete control over setting the market price. B. can influence the market price. C. has no control over setting the market price. D. has the goal of maximizing market share, not profits.
Refer to the above figure. Moving from point A to point B indicates
A. a decrease in supply. B. a decrease in quantity supplied. C. an increase in supply. D. an increase in quantity supplied.