A cartel is an agreement among firms to divide output of a product among members

The growth of the subprime mortgage market led to

A) increased demand for houses and helped fuel the boom in housing prices. B) a decline in the housing industry because of higher default risk. C) a decrease in home ownership as investors chose other assets over housing. D) decreased demand for houses as the less credit-worthy borrowers could not obtain residential mortgages.

If you agree to a long-term loan at a specified nominal rate of interest and inflation turns out to be higher than was anticipated,

A) the nominal rate of interest falls. B) the nominal rate of interest rises. C) the real rate of interest falls. D) the real rate of interest rises.