During 2007, many "subprime" and "Alt-A" borrowers began to default on their mortgages. Describe "subprime" and "Alt-A" borrowers
What will be an ideal response?
"Subprime" borrowers are borrowers whose credit histories include failures to make payments on bills. "Alt-A" borrowers are borrowers who fail to document that their incomes are high enough to afford their mortgage payments.
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The theory of competitive pricing
a. is an imperfect model of market performance. b. is a set of ideal conditions and outcomes. c. is ineffective when large swings in price occur. d. demonstrates the need for subsidies and price ceilings.
Under the Bretton Woods system, countries experiencing large and persistent current account deficits were obliged to devalue their currencies and/or take measures to cut their deficits by contracting their economies.
Answer the following statement true (T) or false (F)