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Author Question: During the Great Recession, securitization: a. Permitted mortgage originators to shift the negative ... (Read 46 times)

ereecah

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During the Great Recession, securitization:
 a. Permitted mortgage originators to shift the negative impact of their underwriting mistakes to investors.
  b.Was one of the only sources of relief for investors who were suffering heavy losses on their mortgage investments.
  c. Was one of the main strategies used by the Federal Reserve to cure the economic downturn.
  d. Was caused by excessive money creation by the Federal Reserve immediately before and during the downturn.
  e. None of the above.

Question 2

If the U.S. government repaid its multitrillion debt by printing (i.e., creating) new money, the effect would be to:
 a. Lower nominal interest rates.
  b. Increase aggregate demand, reduce unemployment, and reduce the nation's price level.
  c. Increase the real risk-free interest rate.
  d. Wildly inflate prices.



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amcvicar

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Answer to Question 1

.A

Answer to Question 2

.D




ereecah

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


Mochi

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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