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Question: a. When a prepayment is made that is less than the full amount to completely pay off the loan, what happens to future monthly mortgage payments for a fixed-rate mortgage loan?
b. What is the impact of a prepayment that is less than the amount required to completely pay off a loan?
In Example 9 in Sect. 13.6.2, it was shown that to achieve a balanced budget, cutting government expenditures by 30 % from $125 to $87.5 billion must be accompanied by raising the marginal tax rate from 10 to 14.15 %. Show how the required tax rat..
Will an increase in the demand for a monopolist"s product always result in a higher price? Explain. Will an increase in the supply facing a monopsonist buyer always result in a lower price? Explain.
What kind of crisis was Latvia experiencing in 2008, a currency crisis, a banking crisis, or a debt crisis? If the IMF had not stepped in with support, what do you think might have occurred?
suppose that you are the chief economic advisor to the president of the united states. you are asked to propose a
What are some factors that would influence your decision to suggest a VLAN? What types of things would the client need to describe to you?
A water distribution company wants to purchase a new pump. The purchase price of the pump is $278,993. The company will put 12.5% down on the pump at the time of purchase and finance the payment of the remaining balance with a 5 year loan having an A..
What is an efficiency wage How might payment of an above-market wage reduce shirking by employees and reduce worker turnover How might efficiency wages contribute to downward wage inflexibility, at least for a time, when aggregate demand declines
it is common for supermarkets to carry both generic store-label and brand-name producer-label varieties of sugar and
The demand curve for bonds would be shifted to the left by an increase in wealth - How is the interest rate that prevails in the bond market determined?
What is Brenda's shut-down price for a dozen of eggs? Should Brenda continue producing eggs in the short run? Explain how you determined your answer.
priced to fall directly on the security market line
Explain the impacts of an expansionary fiscal policy such as a tax cut on the levels GDP, Consumption, Investment, interest rate and unemployment and price.
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