What do Fannie Mae and Freddie Mac have in common?
A) They are both investment banks.
B) Both firms issue bonds on behalf of the government.
C) Both firms went out of business in the 2008 financial crisis.
D) They are both pension funds.
E) They are both government-sponsored mortgage lenders.
Question 2
The aggregate supply curve shifts
A) rightward if potential GDP decreases.
B) rightward if the money wage rate falls.
C) leftward if the aggregate demand curve shifts leftward.
D) rightward if the money wage rate rises.
E) leftward if potential GDP increases.