Question

What is a mortgage-backed security? A share, or part ownership, that you receive back from the...

What is a mortgage-backed security?

  • A share, or part ownership, that you receive back from the bank when you sign a mortgage.

  • A share, or part ownership, in firms that provide home security systems.

  • Money you put down on a house you intend to buy.

  • A share, or part ownership, in a pool of mortgages.

  • A share, or part ownership, in a home.

An increase in input productivity will

  • reduce the equilibrium price level, assuming downward flexible prices.

  • reduce aggregate demand.

  • shift the aggregate supply curve leftward.

  • reduce the equilibrium real output.

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