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:

Maintenance Costs

The expenses incurred to keep an asset in working condition or restore it to proper operation.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed values and those predicted by a linear function.

Machine-Hours

A measure of production time, calculating the total hours a machine is operated within a specific period.

Inspection Costs

Expenses incurred to ensure that products or services meet specified quality and safety standards before being sold or delivered.