Which of the Following Contributed to the Strong Auto Sales

question 197

Multiple Choice

Which of the following contributed to the strong auto sales and soaring housing prices during 2002-2004?

• A) The Fed's high-interest rate policy during the period.
• B) The tightening of loan standards by commercial lenders.
• C) The increasing popularity of fixed-rate, long-term loans to lock in low interest rates.
• D) The Fed's low-interest rate policy during the period.

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Definitions:

Excise Tax

A tax directly levied on certain goods, services, or activities, often included in the price of the product.

Improved Technology

Advances or enhancements in technology that lead to better efficiency, productivity, or outcomes in various fields.

Quantities Supplied

The amounts of goods or services that producers are willing and able to sell at various prices over a certain time period.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to a balance in the market.