During unanticipated inflation,
A. savers lose.
B. borrowers gain.
C. lenders lose.
D. All of the choices are correct.
D. All of the choices are correct.
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Assuming all else equal, if the real interest rate increases, it will lead to:
A) a decrease in the quantity of credit demanded by a firm. B) a rightward shift of the credit demand curve of a firm. C) a leftward shift of the credit demand curve of a firm. D) an increase in the quantity of credit demanded by a firm.
Mortgage insurance protects lenders when a borrower defaults by making up any shortfall needed to repay the loan if the sale of the property doesn't cover the debt Federally regulated lenders must have mortgage insurance on loans where the buyer's down payment is less than 20 per cent of the price. In this example, what signal do potential homeowners give to indicate they are low-risk?
A) indicating high income B) buying an expensive home C) having a large down payment D) buying an inexpensive home