The principal lender-savers are
A) governments.
B) businesses.
C) households.
D) foreigners.
C
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Suppose that Wells Fargo Home Mortgage sells $10 million worth of mortgage payments to GMAC in exchange for $10 million in auto loan payments. This type of transaction is called a
A) credit option. B) credit swap. C) credit-linked note. D) credit default swap.
If your income increases from $40,000 to $48,000 and your consumption increases from $35,000 to $39,000 . your marginal propensity to consume (MPC) is:
a. 0.20. b. 0.40. c. 0.50. d. 0.80. e. 1.00.
An example of a government policy to increase physical capital formation is:
A. the construction of an interstate highway system. B. maintaining a well-functioning legal system. C. government support for basic research. D. the provision of publicly-funded education.
The nominal interest rate is the:
A. annual percentage increase in the dollar value of a financial asset. B. real rate of return on an asset. C. annual percentage increase in the purchasing power of a financial asset. D. the real interest rate minus the inflation rate.