Describe the differences between traditional and nontraditional lending practices. Under which category do subprime loans belong?
In traditional lending, borrowers must provide the lender with proof of income, employment and assets. In nontraditional lending, borrowers may not be required to provide proof of income employment and assets. In addition, in traditional lending down payments are a larger percentage of the house being purchased than in nontraditional lending. Subprime loans are part of
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How is economic growth graphically depicted?
A) The long-run aggregate supply curve shifts right. B) Aggregate demand shifts to the right. C) Short-run aggregate supply shifts left. D) The aggregate demand curve shifts to the left.
The law of diminishing marginal productivity does not apply in the long run because:
A. no inputs are fixed in the long run. B. some inputs are fixed in the long run. C. all inputs are fixed in the long run. D. some inputs are variable in the long run.