What is one reason for the high interest rates for home loans offered to those with low credit ratings?
A) Predatory lending practices
B) Those with lower credit ratings faced a restricted supply of loans, ceteris paribus.
C) Those with lower credit ratings typically demand greater loans, ceteris paribus.
D) Government regulation
B
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In the foreign exchange market between dollars and pesos, the demand for dollars by Mexicans creates the supply of pesos
Indicate whether the statement is true or false
Nominal GDP for a year in the U.S. is currently closest to which of the following figures?
A) $1.5 trillion B) $8.5 trillion C) $18.5 trillion D) $28.5 trillion
When the credit spread rises, an effective policy response might be to ________
A) lower the real interest rate on safe assets B) prevent the real federal funds rate from falling below zero C) pursue nonconventional monetary policies to restore the functioning of financial markets D) announce swift and stern action against those responsible for the financial disruption
_____ have no decision-making powers but can lose no more than what they have invested
a. Limited partners in a limited partnership b. General partners in a limited partnership c. Senior managers in a joint venture d. Sole proprietors