There Are Some Economists Who Argue That Low Mortgage Interest

question 4

Multiple Choice

There are some economists who argue that low mortgage interest rates in the time period preceeding the financial crisis of 2007-2009 were a result of a ___________ in global savings.They argue that emerging countries began to save ___________ which helped to _____________ the supply of loanable funds in the United States.

• A)glut;less;decrease
• B)glut;more;increase
• C)decline;more;increase
• D)decline;less;decrease

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Definitions:

Utility Function

A mathematical representation that shows the relationship between an individual's satisfaction and their consumption of different goods and services.

Private Consumptions

Refers to the spending on goods and services by individuals or households rather than by the government or businesses.

Total Amount

The entire sum or quantity of something, often referring to a final total in financial contexts.

Utility Function

A numerical depiction of the ranking of a consumer's preferences among various products or results.