-In the Above Figure, Curve D Slopes Downward Because

question 298

Multiple Choice

-In the above figure, curve D slopes downward because

• A) average fixed costs decrease as output increases.
• B) all costs decrease as output increases.
• C) there are diminishing returns.
• D) there are decreasing marginal costs.

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Definitions:

Fannie Mae

A government-sponsored enterprise (GSE) established to expand the secondary mortgage market by making mortgages more accessible to low- and middle-income borrowers.

Freddie Mac

A government-sponsored enterprise (GSE) focused on expanding the secondary mortgage market by buying loans from lenders, thereby providing liquidity, stability, and affordability in the housing market.

Secondary Mortgage Markets

Markets where lenders and investors buy and sell existing mortgages or mortgage-backed securities, providing liquidity and capital to the primary mortgage market.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.