To reassure investors who were unwilling to buy mortgages in the secondary market, the U.S. Congress used two government sponsored enterprises, Fannie Mae and Freddie Mac, to stand between investors and banks that grant mortgages
Fannie Mae and Freddie Mac
A) sell bonds to investors and use the funds to purchase mortgages from banks.
B) sell bonds to banks and use the funds to purchase mortgages from investors.
C) sell mortgages to banks and use the funds to purchase bonds from investors.
D) sell mortgages to investors and use the funds to purchase bonds from banks.
A
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The short-run average total cost curve eventually turns upward to form a U shape because: a. of diminishing marginal cost
b. of increasing average fixed cost. c. all factors can be varied in the long run. d. of diminishing marginal productivity.
Suppose we were analyzing the Turkish lira per euro foreign exchange market. If The Euro-Area's tax level falls relative to Turkey and nothing else changes, then the:
a. The supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market rises, causing an appreciation of the euro. b. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing an appreciation of the euro. c. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market rises, causing an uncertain change in the value of the euro. d. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing a depreciation of the euro. e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.