How consumer demand would change

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Choose one of the scenarios below and write a three-paragraph essay describing its effect on prices for food, housing, and oil. Remember that the future is always uncertain, so there's no right answer. Make your best guess as to what might happen in each case based on the economic concepts you've learned so far.

Pay particular attention to how consumer demand would change and how the event would affect production costs and the business cycle.

a. The president signs a free-trade agreement between the United States and Brazil.

b. The Federal Reserve chairman says that the central bank will raise interest rates.

c. The Environmental Protection Agency relaxes environmental rules on timber production.

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This assignment is based on the impact of changes in the interest rate by central bank on the borrowing cost, currency value, stock market, mortgage interest payments, inflation, and the government debt.

Reference no: EM131901218

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Reviews

inf1901218

4/23/2018 5:42:48 AM

The price is too expensive for a 3-day delivery. Please advise if you can either lower the price or the duration. If there is plagiarism I will return the order. How does raising interest rates to affect the prices for FOOD, HOUSING, and Oil??? How will consumer demand change based on the rise in interest rates? How will increase interest rates affect production costs? How will increase interest rates affect the business cycle? Thank you for revising it the part about housing food and oil was covered.

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