An unexpected decrease in aggregate demand results in an increase in real interest rates in the short run

In general, a "big ticket item" such as a house or new car will

A) tend to have a more inelastic demand the more time that passes. B) tend to have an inelastic demand because spending on the item takes up a large share of the average consumer's budget. C) tend to have an inelastic demand because it has many substitutes. D) tend to have a more elastic demand than a lower-priced good.

An important factor in producing the global financial crisis was

A) lax consumer protection regulation. B) onerous rules placed on mortgage originators. C) weak incentives for mortgage brokers to use complicated mortgage products. D) strong incentives for the mortgage brokers to verify income information.