Explicate the significance of unexpected inflation

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Reference no: EM132445098

The Structure of Interest Rates" Please respond to the following:

1. Assume you are in the market to purchase a new home worth up to $200,000. Discuss whether it makes more sense to opt for a 30-year mortgage or a 15-year mortgage. Explain your rationale.

2. Explicate the significance of unexpected inflation so someone completely unfamiliar with economics could make better financial decisions (if he / she listened to your explanation).

3. Determine the best possible way to account for inflation when considering where to invest your money. Provide specific examples to support your response.

Reference no: EM132445098

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