When someone takes out a mortgage loan to buy a house, the mortgage lender can take possession of the house and sell it if the borrower defaults on the loan because the house is being pledged as ________ for the loan
A) collateral
B) insurance
C) a liability
D) goodwill
Answer is A) collateral
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When the interest rate increases, people will adjust their precautionary demand for money
A) downward or upward depending upon the actual supply of money. B) upward. C) not at all. D) downward.
A decrease in the supply of dollars on the foreign exchange market, all else equal, will result in:
A) appreciation of the U.S. dollar and depreciation of the foreign currency. B) appreciation of the U.S. dollar and appreciation of the foreign currency. C) depreciation of the U.S. dollar and depreciation of the foreign currency. D) depreciation of the U.S. dollar and appreciation of the foreign currency.
When the cross-price elasticity of demand between two products is positive, the two goods are said to be substitutes
a. True b. False
If a country begins allowing free international trade in a good, and as a result, it increases imports of that good
a. domestic producers gain more than domestic consumers lose. b. domestic producers lose more than domestic consumers gain. c. domestic consumers gain more than domestic producers lose. d. domestic consumers lose more than the domestic producers gain.