During the Expansion Phase of the Business Cycle,households Become Optimistic

question 141

Multiple Choice

During the expansion phase of the business cycle,households become optimistic about their future earning capacity as do banks.Nominal interest rates rise during expansions.Mortgage lending could be expected to

• A)rise if the change in future earnings is thought to be greater than the change in interest rates.
• B)stay the same.
• C)fall.
• D)fall if the change in future earnings is thought to be greater than the change in interest rates.

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Definitions:

Plaintiff

The party who initiates a lawsuit in a court of law against another party, the defendant, seeking legal remedy.

Victim

An individual or entity that suffers harm or loss as a result of a crime, accident, or other event or action.

Mediation

A form of alternative dispute resolution where a neutral third party helps disputing parties reach a mutually satisfactory agreement.

Cooperative/Flexible

A mindset or organizational style that emphasizes working together and adapting to change or unforeseen circumstances.