In order to ensure that borrowers have an ability to repay residential mortgages, the new consumer protection legislation requires lenders to do all of the following EXCEPT
A) verify the income of the borrower.
B) verify the borrower's job status.
C) check the credit history of the borrower.
D) verify that the borrower can read and understand a loan contract.
D
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Consider a BMW automobile plant. If the price of BMWs increase by 10 percent and the money wage rate and other costs ________, there will be ________
A) increase by 10 percent; an increase in BMWs profits B) do not change; an increase in BMW's production and profit C) increase by 10 percent; an increase in BMWs production D) do not change; no change in production
When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information b. decisions are being moved to those with stronger incentives to make good decisions c. decisions are being moved away from those with more of the relevant information d. decisions are being moved to those with weaker incentives to make good decisions