As the housing bubble collapsed, as more foreclosures occurred, and the supply of homes for sale:
A. increased, it further decreased home values, which led to more foreclosures.
B. increased, the price of homes fell, and so the demand for homes increased.
C. decreased, as homeowners no longer wanted to sell their homes when prices were low.
D. decreased, as homeowners refused to sell when they owed more than the market value.
A. increased, it further decreased home values, which led to more foreclosures.
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Use the following data to answer the next question. The disposable income (DI) and consumption (C) schedules are for a private, closed economy (an economy with no government and no international trade). All figures are in billions of dollars.Disposable IncomeConsumption$10,000$12,00018,00018,00026,00024,00034,00030,00042,00036,00050,00042,000If disposable income is $42,000, then saving is
A. $4,000. B. $2,000. C. $6,000. D. $0.
The principal-agent problem is a problem
A) of the power system of boss and subordinate where the boss (principal) exerts influence over his subordinates (agents) using punishment or threat. B) that exists when a person (principal) has more information about the task than the agent he hires to perform the task. C) caused by agents pursuing their own interests rather than the interests of the principals who hired them. D) caused by a person (principal) who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way.
If the dotted horizontal line represents the effect of a usury law then there is a _____ of loanable funds of _________ billion dollars.
A. surplus; 50
B. shortage; 50
C. surplus; 110
D. shortage; 110
Demonstrating how an economic variable changes from one year to the next is best illustrated by a
A) time-series graph. B) scatter diagram. C) Venn diagram. D) linear graph. E) cross-section graph.