By the 2000s, an Important Change in the U

question 191

Multiple Choice

By the 2000s, an important change in the U.S.mortgage market had occurred when ________ became significant participants in the secondary market for mortgages.

• A)investment banks
• B)Federal Reserve Banks
• C)commercial banks
• D)savings banks
• E)Fannie Mae and Freddie Mac

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Definitions:

Average Total Costs

The total cost of production divided by the quantity of output produced, illustrating the cost per unit of output.

Total Fixed Costs

The total of all expenses that do not change with the amount of production or output.

Marginal Cost Curve

A curve that shows the cost of producing one more unit of a good or service, typically upward sloping because of increasing marginal costs.

Average Variable Cost Curve

A graphical representation of the variable cost per unit at different levels of output.