The "exotic" mortgage instrument of recent years is exemplified by the

Refer to Table 4-8. Suppose that the quantity of labor demanded increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

A) W = $8.00; Q = 390,000 B) W = $8.50; Q = 380,000 C) W = $10.00; Q = 390,000 D) W = $9.50; Q = 380,000

When households have very low savings ________

A) investment decreases B) they are less able to cope with severe economic downturns C) bankruptcies increase D) all of the above E) none of the above