During the housing boom of the mid-2000s, many lenders made mortgage loans to homebuyers who typically had flawed credit histories which made these borrowers high credit risks
These homebuyers were typically charged interest rates that were initially low but would rise after a period of years to very high rates. Homeowners who took out these types of mortgages are often referred to as A) payday borrowers.
B) default-risk intermediaries.
C) subprime borrowers.
D) FHA customers.
C
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Stagflation is a period of time when the economy is experiencing:
a. inflation and low unemployment. b. high unemployment and low levels of inflation at the same time. c. high inflation and high unemployment at the same time. d. low inflation and low unemployment at the same time.
According to Baumol and Blinder, from the demand side, an increase in the price level causes aggregate expenditures to
A. fall, resulting in a lower level of equilibrium income. B. fall, resulting in a higher level of equilibrium income. C. rise, resulting in a higher level of equilibrium income. D. rise, resulting in a lower level of equilibrium income.