Spending constants & lowering taxes

If the opportunity cost of 1 wristwatch is 4 wall clocks in Japan and 2 wall clocks in Germany, it makes sense for Germany to produce wristwatches

Indicate whether the statement is true or false

By the height of the housing bubble in 2005 and early 2006, lenders had greatly loosened the standards for obtaining a mortgage loan, with many mortgages being granted to ________ borrowers with flawed credit histories and ________ borrowers who did

not document their incomes. A) adjustable rate; shadow-banking B) "fresh-start"; prime rate C) sub-prime; "Alt-A" D) "credit crunch"; black market