Recall the Application. Assume that immediately before the housing bubble burst, you purchased a $250,000 home and took out a $225,000 mortgage to make the purchase. When the bubble burst, the value of your home fell by 20 percent
The value of the home is now ________ and you owe the mortgage company ________.
A) $180,000; $225,000 B) $200,000; $180,000 C) $200,000; $225,000 D) $180,000; $200,000
C
Economics
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Until recently, many developing countries
A) encouraged foreign direct investment but discouraged foreign portfolio investment. B) sealed themselves off from foreign investment. C) were quite open to foreign investment. D) encouraged foreign portfolio investment but discouraged foreign direct investment.
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In the fooling model, should an expansion of aggregate demand cause fooling, the actual real wage ________ while the expected real wage ________
A) rises, rises B) rises, remains constant C) falls, falls D) falls, remains constant E) falls, rises
Economics