If mortgage brokers do not make a strong effort to evaluate whether the borrower can pay off a loan, this creates a
A) severe adverse selection problem.
B) decline in mortgage applications.
C) call to deregulate the industry.
D) decrease in the demand for houses.
A
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In the endogenous growth model, an increase in a worker's level of human capital
A) increases the amount of additional human capital she can produce, but does not increase the amount of output she can produce. B) increases the amount of additional output she can produce, but does not increase the amount of human capital she can produce. C) increases both the amount of additional human capital she can produce and the amount of output she can produce. D) increases neither the amount of additional human capital she can produce nor the amount of output she can produce.