The 1990s U

question 65

Multiple Choice

The 1990s U.S. economy enjoyed a technology jump in the form of the Internet. Which of the following is likely to be predicted by a DSGE model?
i. A decline in the marginal product of labor
ii. A decrease in output
iii. An increase in the real wage

• A) iii
• B) ii
• C) i
• D) i and ii
• E) ii and iii

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Definitions:

Mortgage

A secured loan where property is used as collateral for borrowing money, usually for purchasing real estate.

Transfer

The act of moving assets, rights, or interests from one party to another, which can involve property, securities, or legal rights.

Short Sale

A financial transaction where an investor sells borrowed securities, anticipating a price decline to buy them back at a lower price.

Mortgage Loan

is a type of loan used to purchase or maintain a home, land, or other types of real estate where the borrower agrees to pay back the lender over a period of time, typically through monthly payments.