In the latter half of the 1990s, the Department of Housing and Urban Development imposed regulations on Fannie Mae and Freddie Mac, requiring them to
a. extend more mortgage loans to households with low and moderate incomes.
b. accept only mortgages with at least a 20 percent down payment.
c. tighten lending standards and increase their holdings of low-risk, conventional mortgages.
d. extend more mortgage loans to households with middle and high incomes.
A
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The diamond-water paradox of value can be explained by
A) distinguishing between total utility and marginal utility. B) water's high level of utility relative to diamonds. C) water's low price relative to diamonds. D) the fact that utility cannot be measured.
In the income-expenditure framework, if planned aggregate expenditures are greater than real gross domestic product (GDP), _____
a. the price level will fall b. consumption will fall c. inventories will increase d. inventories will decrease e. consumption will decrease
An aggregate production function shows the relationship between
a. the quantity of inputs used in production and the quantity of output. b. gross domestic product and national income. c. workers as inputs and consumers as buyers. d. production and spending. e. none of the above.
The Board of Governors of the Fed:
A. consists of seven state governors who represent the views of individual states in monetary policy. B. consists of seven members appointed by the President of the United States, who together act as the key decision-making entity for monetary policy. C. consists of 13 large commercial bank CEOs who represent the interests of the private banking sector in monetary policy. D. is the primary monetary group responsible for buying and selling bonds designed to change reserves in the banking system. The Board of Governors is the key decision maker for monetary policy.