President Truman Once Said the Wanted to Find a One-Armed

question 92

Multiple Choice

President Truman once said the wanted to find a one-armed economist because when he asked his economists for advice,they always answered,"On the one hand,...On the other hand,..." Truman's observation that economists' advice is not always straightforward

• A) is rooted in the principle that people face tradeoffs.
• B) indicates that economists recognize that there are opportunity costs associated with policy decisions.
• C) confirms that economists are not suited to be presidential advisers.
• D) More than one of the above is correct.

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Definitions:

Principal

The person (client) for whom a service is performed. Amount that is borrowed using credit.

Second Mortgage

A type of subordinate mortgage made while an original mortgage is still in effect, securing the collateral by the same property.

Amortized Loan

A loan with scheduled periodic payments that cover both interest and principal over a specific time period.

Monthly Mortgage Payment

The amount that is paid each month by a borrower to a lender for a home loan, which often includes principal, interest, taxes, and insurance.