What was the main reason for "liar loans" to proliferate?
What will be an ideal response?
The incentives to mortgage brokers were such that the more loans they generated, the greater was their compensation. Therefore, the mortgage brokers had no incentive to go behind the scenes to check the viability of repayment.
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What is the Social Security system?
What will be an ideal response?
Suppose that U.S. firms outsource plane manufacturing jobs to China, it is expected that
A) the wage rate for workers manufacturing planes will decrease in the U.S. but increase in China. B) the wage rate for workers manufacturing planes will increase in the U.S. but decrease in China. C) the wage rate for workers manufacturing planes will increase in both the U.S. and China. D) the wage rate for workers manufacturing planes will decrease in both the U.S. and China.