A "bubble" in the housing market can be more easily fueled by
A. cash-only financing requirements.
B. exclusive reliance upon banks as a source of credit.
C. "exotic" mortgages.
D. traditional mortgage loans.
Answer: C
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If there is a temporary increase in the money supply in the Eurozone, ceteris paribus, what is the result for the United States?
a. The money supply in the United States must decrease by the same proportion. b. The U.S. dollar nominal interest rate will increase, as the euro rate is unchanged. c. Long-run expectations shift to expect a stronger euro. d. The dollar appreciates against the euro.
Compared to a perfectly competitive firm, in a long run the monopolistically competitive firm will have
A) a lower price. B) a lower average cost. C) a horizontal demand function. D) a lower rate of output.
If average cost is positive,
A) marginal cost equals average cost. B) marginal cost exceeds average cost. C) marginal cost is less average cost. D) Not enough information is given.
With a natural monopoly, the normal profit price is ________ and the competitive price is ________.
A. not allocatively efficient; allocatively efficient B. allocatively efficient; allocatively efficient C. not allocatively efficient; not allocatively efficient D. allocatively efficient; not allocatively efficient