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Author Question: When mortgage loans are securitized, they are A) issued to borrowers with flawed credit ... (Read 114 times)

Deast7027

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on: Jun 29, 2018
When mortgage loans are securitized, they are
 
  A) issued to borrowers with flawed credit histories.
  B) issued to borrowers who fail to document their income.
  C) bundled together by financial institutions and sold to investors.
  D) guaranteed by the federal government.

Question 2

Using the Figure 13.3 above explain why this firm could not possibly represent a monopolist. What type of firm is represented by this graph and why?
 
  What will be an ideal response?


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zhanghao

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

This firm couldn't be a monopolist since monopolists face a downward-sloping demand curve. This firm is a perfectly competitive firm since the demand curve indicates that it is a price taker.


Deast7027

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

mochi09

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Reply 3 on: Yesterday
Gracias!

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