Borrowers who use "exotic" mortgages when purchasing a home must expect
A. Congress will act to make everything "turn out in the end."
B. their income to increase.
C. the value of the home to increase.
D. an increase in the value of the home and their income.
Answer: D
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The Boy Scouts have so far sold 100 tickets for their upcoming raffle, but they sell an additional 12 tickets every day. The ________ is a stock variable, and the ________ is a flow variable.
A. number of tickets sold each day; total number of tickets available B. total number of tickets sold by the time of the raffle; number of tickets sold each day C. number of tickets sold each day; number of tickets sold so far D. number of tickets sold so far; total number of tickets sold by the time of the raffle
If a straight line crosses the Y-axis at 5 and crosses the X-axis at 10, we can conclude that the slope of the line is
A) positive. B) negative. C) zero. D) infinity.
The government wishes to close an inflationary gap by reducing national income by $400 billion. Assuming a tax multiplier of 4 and an income multiplier of 5, which of the following policy prescriptions would reduce the inflationary gap by $400 billion?
a. decreasing government spending by $400 billion and increasing taxes by $400 billion b. decreasing government spending by $160 billion and decreasing taxes by $100 billion c. decreasing government spending by $40 billion and decreasing taxes by $40 billion d. decreasing government spending by $80 billion and keeping taxes the same e. doing absolutely nothing to the economy
Stock prices fell throughout much of 2007 and 2008 and many investors decided to switch their funds into the bond market. What only about 30 percent of surveyed investors knew was that as bond prices rise, interest rates
a. fall in reaction to the increased demand for bonds. b. fall in reaction to the decreased demand for bonds. c. rise in reaction to the increased demand for bonds. d. rise in reaction to the decreased demand for bonds.