During 1979-2005, the Mortgage Default Rate

question 37

Multiple Choice

During 1979-2005, the mortgage default rate

• A) was less than the foreclosure rate.
• B) soared to more than 5 percent during recessions but declined sharply during economic expansions.
• C) soared to more than 5 percent during expansions but declined sharply during economic recessions.
• D) was generally between 1 and 2 percent.

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Definitions:

Present Value

The contemporary value of money or cash flows due in the future, calculated with a designated rate of return.

Received

To have been given, accepted, or acknowledged something that is sent or provided.

Economic Rent

The excess payment made to a factor of production over and above what is needed to keep it in its current use.

Land

In economics, it refers to all natural resources used to produce goods and services, one of the factors of production.