Use the Following Table to Answer the Questions : Table9

question 25

Multiple Choice

Use the following table to answer the questions : Table9.2:

-Complete Table 9.2.(Data are expressed in billions of dollars. ) If the full-employment level of income (Y_F) in Table 9.2 is $700 billion,

• A)The economy is in equilibrium.
• B)There is a recessionary gap of $250 billion.
• C)There is an inflationary gap of $450 billion.
• D)There is an inflationary gap of $700 billion.

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Definitions:

Right of Redemption

The legal right of a debtor, particularly a mortgagor, to reclaim their property by paying the debt, usually after a foreclosure.

Foreclosure Sale

A legal process by which a lender sells or repossesses a property after the owner fails to comply with an agreement in the mortgage contract.

Interest

A fee paid for the use of borrowed money, typically a percentage of the amount borrowed.

Mortgage

A legal agreement by which a bank, credit union, or other financial institution lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of the title becomes void upon the payment of the debt.