Fannie Mae and Freddie Mac's rapid increase in the percentage of all mortgages held encouraged mortgage lenders to
a. tighten credit standards and decrease the number of sub-prime loans extended to borrowers.
b. offer lower rates than what Fannie Mae and Freddie Mac could offer.
c. lower credit standards and offer terms acceptable to Fannie Mae and Freddie Mac.
d. scrutinize the credit-worthiness of borrowers and require higher down payments on mortgages.
C
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The IS curve slopes upward because
a. as income rises, savings rise and consumption falls, decreasing output. b. as interest rates rise, the money supply rises, increasing output. c. as interest rates rise, planned investment must fall, increasing output. d. as income increases, money demand rises, which increases interest rates.
What are the functions for MC and AC if TC = 100q + 100q2? Are the returns to scale increasing, decreasing, or constant?
What will be an ideal response?