The ________ the down payment made by a borrower when taking out a mortgage, the ________
A) lower; lower the interest rate usually charged by the financial company issuing the mortgage
B) lower; more highly leveraged that borrower is on the mortgage
C) higher; more likely the mortgage-issuer will be faced with a mortgage default.
D) higher; greater the risk that the borrower will find herself upside down on the mortgage
B
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Many economists argue that, in the long run, the economy self-corrects and achieves full employment. This argument is known as the:
a. natural rate hypothesis. b. incomes policy approach. c. political business cycle theory. d. Keynesian cross model.
In most rich countries, adult citizens typically have a
a. primary education. b. secondary education. c. higher education. d. graduate-level education.
As the interest rate rises, businesses invest __________ and the AD curve shifts to the __________
A) more; right B) more; left C) less; right D) less; left
Your company makes copper pipes. Over the years, you have collected a large inventory of raw copper. The production process involves melting the copper and shaping it into pipes. You also have a large stockpile of pennies. Suppose the price of copper rises so much that the copper in the penny becomes worth more than one cent. Should you melt down your pennies?
What will be an ideal response?