When housing prices ________ as they did beginning in 2006 ...

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When housing prices ________ as they did beginning in 2006 following the housing market bubble, most banks and other lenders tightened the requirement for borrowers, making it ________ for potential home buyers to obtain mortgages.
 
  A) fell; easier B) rose; easier C) rose; harder D) fell; harder

Question 2

Suppose Congress increased spending by 100 billion and raised taxes by 100 billion to keep the budget balanced. What will happen to real equilibrium GDP?
 
  A) Real equilibrium GDP will fall.
  B) Real equilibrium GDP will rise.
  C) Real equilibrium GDP will initially rise, but then fall below its previous equilibrium value.
  D) There will be no change in real equilibrium GDP.

[cdmart10]

Answer to Question 1

D

Answer to Question 2

B

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