In 2005 and 2006, because of fears of inflation, the Fed:
a. increased interest rates which lead to higher monthly payments on fixed rate mortgages.
b. increased interest rates which lead to higher monthly payments on adjustable rate mortgages.
c. decreased interest rates which lead to higher monthly payments on fixed rate mortgages.
d. decreased interest rates which lead to higher monthly payments on adjustable rate mortgages.
Question 2
Inferior goods are low quality goods that people prefer to buy less of.
a. True
b. False
Indicate whether the statement is true or false
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