In 2008, the Many People Became Unable to Make Payments

question 164

Multiple Choice

In 2008, the many people became unable to make payments on their mortgages and instead defaulted on them. As a result, the of loanable funds curve shifts and real interest rate .

• A) supply; rightward; falls.
• B) supply; leftward; increases
• C) demand; leftward; increases.
• D) demand; rightward; decreases.

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Definitions:

Technical Analysis

A technique for appraising securities through the study of market-generated statistics, like previous prices and transaction volumes.

Predictable Patterns

Patterns in financial markets or data sets that tend to repeat themselves over time, allowing for the anticipation of certain market movements under specific conditions.

P/E Ratios

The Price-to-Earnings Ratio is a valuation metric used to measure a company's current share price relative to its per-share earnings.

Average Returns

The arithmetic mean of a series of returns generated over a period of time.