To reassure investors who were unwilling to buy mortgages in the secondary market, the U.S. Congress used two government sponsored enterprises, ________, to sell bonds to investors and use the funds to purchase mortgages from banks
A) the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC)
B) ACORN and the Federal Housing Administration (FHA)
C) Fannie Mae and Freddie Mac
D) the Fed and the Treasury Department
C
You might also like to view...
In New York City, when he was the mayor Michael Bloomberg recommend that the city, with the help of private donors, make cash payments to poor and underprivileged parents who can certify that their children are attending school on a regular basis
The payments would start after third grade and go through high school, rising each year as dropout rates get higher and a child's forgone earning potential is higher. What economic concept does this policy represent? A) public goods B) incentives C) externalities D) technological progress E) the "invisible hand"
The 1964 tax reform was designed to _____
a. simplify the tax structure b. remove the bias towards consumption in the tax code c. cut marginal tax rates in order to increase aggregate demand d. cut average tax rates in order to decrease aggregate demand
How long does it take a firm to go from the short run to the long run?
a. six months b. one year c. two years d. It depends on the nature of the firm.
Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 100 Japanese yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
A. Buy U.S. dollars. B. Sell U.S. dollars. C. Encourage U.S. investments abroad. D. Buy more Japanese goods.