Tranching makes it so that packages of reliable, low-risk mortgages could be sold to ________, while higher-risk subprime mortgages could be sold to ________.
A. more risk-loving investors; risk-averse investors
B. more risk-averse investors; risk-loving investors
C. national banks; local banks
D. local banks; the government
Answer: B
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If a firm produces 20 units of output and incurs a total cost of $1,000 and a variable cost is $700, calculate the firm's average fixed cost of production if it expands output to 25 units
A) $300 B) $15 C) $12 D) It is impossible to determine without additional information.
Refer to the above figure. Assume that B is the current long-run aggregate supply (LRAS) curve and E is the current short-run aggregate supply (SRAS) curve
If a 90-day embargo of oil from the Middle East to the United States were announced, and if after that 90-day period oil prices were expected to return to normal pre-embargo prices, then you would expect A) the LRAS and the SRAS to remain at B and E, respectively. B) the LRAS to remain at B, but the SRAS to shift to D. C) the LRAS to remain at B, but the SRAS to shift to F. D) the LRAS to shift to C, and the SRAS to shift to F.
Picture the curve. The total revenue curve originates at the origin
Indicate whether the statement is true or false
Suppose that an anti-smoking campaign in Moscow, Russia, is successful so that Muscovites smoke less and chew gum more. Tobacco companies lay off workers, while chewing gum manufacturers employ more workers. This is an example of
a. structural unemployment created by efficiency wages.
b. structural unemployment created by sectoral shifts.
c. frictional unemployment created by efficiency wages.
d. frictional unemployment created by sectoral shifts.