In 2005 and 2006, because of fears of inflation, the Fed:
a. increased interest rates which lead to higher monthly payments on fixed rate mortgages
b. increased interest rates which lead to higher monthly payments on adjustable rate mortgages.
c. decreased interest rates which lead to higher monthly payments on fixed rate mortgages.
d. decreased interest rates which lead to higher monthly payments on adjustable rate mortgages.
b
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Boeing Corporation and Airbus Industries are the only two producers of long-range commercial aircraft. This market is not perfectly competitive because:
A. Airbus cannot sell aircraft to the United States government. B. each company has annual sales over $10 billion. C.Airbus receives subsidies from the European Union. D. all of the above E. each company can significantly affect prices.
When demand increases, the equilibrium price ________ and the equilibrium quantity ________
A) rises; decreases B) falls; decreases C) rises; increases D) falls; increases