Which of the Following Was a Contributing Factor to the Housing

question 58

Multiple Choice

Which of the following was a contributing factor to the housing boom and bust and the financial crisis of 2008?

• A) An increase in the share of loans to sub-prime borrowers.
• B) An increase in the share of loans extended to borrowers making only a small down payment.
• C) An increase in adjustable-rate mortgages (ARMs) as a share of the total.
• D) All of the above.

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Definitions:

Labor Supplied

The total number of hours that workers are willing and able to work at a given wage rate.

Minimum Wage

The lowest legal wage that employers can pay to workers, aimed at protecting workers from unduly low pay.

Equilibrium Wage Rate

The equilibrium wage rate is the wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers.

JMP Instruction

A command in assembly or machine language that causes the computer to jump to a different part of the program.