In 2008, the Many People Became Unable to Make Payments

question 101

Multiple Choice

In 2008, the many people became unable to make payments on their mortgages and instead defaulted on them. As a result, the ________ of loanable funds curve shifts ________ and real interest rate ________.

• A) supply; leftward; increases
• B) demand; leftward; increases.
• C) supply; rightward; falls.
• D) demand; rightward; decreases.

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Definitions:

Contract

A contract recognized by law, involving two or more parties, making it enforceable through legal proceedings.

Agency

The service an agent performs on behalf of a principal.

Breach Duties

The failure to perform obligations or duties as prescribed in a contract or by law.

Credit Standing

An assessment or evaluation of an individual's or entity's ability to repay obligations or debts.