The Fed's low short-term interest rate policy from 2002-2004, along with housing regulations promoting low down-payment loans to sub-prime borrowers, encouraged
a. conventional 30-year, fixed rate mortgages which have relatively high default and foreclosure rates.
b. conventional 30-year, fixed rate mortgages which have relatively low default and foreclosure rates.
c. adjustable rate mortgages which have relatively low default and foreclosure rates.
d. adjustable rate mortgages which have relatively high default and foreclosure rates.
D
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When total utility is at a maximum, marginal utility is zero.
a. true b. false
If aggregate demand increases, thereby leading to an increase in real GDP and inflation, there is
A) a leftward shift in the short-run Phillips curve. B) a movement downward along the short-run Phillips curve. C) a movement upward along the short-run Phillips curve. D) a rightward shift in the short-run Phillips curve. E) neither a movement along nor a shift in the short-run Phillips curve.