Which of the following is NOT true about subprime mortgage loans:
A. They played a central role in the financial crisis of 2007-2008
B. They were encouraged by the Federal government for many years before the financial crisis
C. They had always been discouraged by the government, and even banned in some cases
D. They were considered high-risk loans because the borrowers had poor credit ratings
C. They had always been discouraged by the government, and even banned in some cases
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If the government adopts expansionary monetary policy during a recession, ________
A) tax rates increase B) government spending falls C) access to credit increases D) interest rates increase
There is a 15 percent increase in the price of lumber used by a firm that builds new homes. This causes
A) a decrease in the quantity of new homes supplied. B) an increase in the supply of new homes. C) an increase of the quantity supplied of new homes. D) a decrease in the supply of new homes.