Overpaying for the product

Assignment Help Macroeconomics
Reference no: EM131071174

Explain if you disagree or agree with this statement and why?

If you take out money to buy a home, a car etc. you will always be overpaying for the product that you are receiving. Generally, an ordinary person is not getting a 1% loan from the federal reserve, and they sure are not paying it back with the speed that the banks can. Just like in the video, when the housing market tanked, people were paying triple for a home that was virtually worthless.

No credit is good credit and if possible cash (which is basically worthless anyway, but I'm sure well get into this later in the class) is always the best option. Even if we cant pay of something in full (which for a for large purchases is just about impossible for ordinary people) holding off for some time and putting down a larger down payment is much safer and give you more control. Its not the easiest or quickest way to go but it will give the buyer to come out on top.

Reference no: EM131071174

Questions Cloud

How scientific methodology can provide related information : Talk about a political issue and describe how scientific methodology can provide related information, but the core issue to be resolved cannot be answered with scientific methodology alone.
Analyze internal and external business processes : ISFM-300 Case Study, Stage 1: Business Environment Analysis - analyze internal and external business processes to identify information systems requirements
Prepare a briefing note for the organisational change : Develop a "TO BE" and "AS IS" process using BPMN or UML then compare theAs-Is and To-be diagrams to assess the impact of change and prepare a briefing note for the Organisational change and Training Team regarding the anticipated business impact o..
Multi-commodity facility location problem : Consider the two-echelon multi-commodity facility location problem. We are given a set V1 of suppliers, a set V2 of potential warehouses, a set V3 of demand points, and a set K of products.
Overpaying for the product : If you take out money to buy a home, a car etc. you will always be overpaying for the product that you are receiving. Generally, an ordinary person is not getting a 1% loan from the federal reserve, and they sure are not paying it back with the sp..
How these implications affect people and/or society : explain the ethical and social implications and how they relate to converging technologies. Justify your choices by analysing how these implications affect people and/or society.
Using another form of intellectual property protection : Describe two (2) reasons why The Coca-Cola Company would choose to protect its soft drink formula as a trade secret, as opposed to using another form of intellectual property protection (for example, a patent).
Construct a bitmap index on the attribute salary : Consider a query that requests all instructors in the Finance department with salary of 80000 or more. Outline the steps in answering the query, and show the final and intermediate bitmaps constructed to answer the query
Equilibrium price and quantity of widgets : a) Assume that in 2010 M=$15,000 and Pr=$20. Solve algebraically to determine the 2010 equilibrium price and quantity of widgets b) Now assume two events occur: income drops to $13,000 and supply conditions change such that Qs=50 + 3P. Solve algebr..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explain phillips curve, aggregate demand, and aggregate supp

If the Bank of Canada continues to take expansionary monetary policy, how are the unemployment rate and inflation affected? (Use both Phillips curve and AS-AD graphs in your explanation.)

  Explain why is the federal income tax progressive

Do you think the argument against redistributing income through income taxes based on reducing economic efficiency is a strong one. Provide an example where a business did not expand because the possible taxes on the profits due to that expansion.

  Calculate output, price, total revenue and total profit

Restaurant Marketing Services, offers affinity card marketing and monitoring systems to fine dining establishments nationwide. Fixed expenses are $600,000 a year.

  Resources play in influencing long run economic growth of

What roles do physical capital, human capital, technology, and natural resources play in influencing long run economic growth of aggregate output per capita?

  How much output is being forgone

Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion i..

  The economy is at full employment

Assume that the economy is at full employment, interest rate is 4%, and money supply is $1,000. Suppose economy is experiencing a sudden rise in crude oil prices. A. Use the AS/AD model to show the impact of this event on equilibrium GDP and equilibr..

  The slope of the total product curve

1. The slope of the total product curve is: 2. Marginal product, mathematically, is the slope of the:

  Production and cost estimation

Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.

  Was there a legal duty on the part of the physician

A man reports to the emergency room complaining of shortness of breath, chest pain radiating down his arm, is diaphoretic and has a positive smoking history as well as a positive family history for cardiovascular disease.

  What if any country was taken over by dictator diana

What if you lived on a tropical island with such abundant fish and game, fruits and berries, natural shelters like caves, and firewood that the citizens did not have to work and GDP was very low Would the citizens' sense of well-being be lower tha..

  Required to find out an articles about price elasticity

Required to find out an articles about price elasticity in the home building industry

  In a keynesian model what is the level of income

Since GDP measures the nation's output at current market prices, then if a good or service is not exchanged through the marketplace, it cannot and does not go into GDP A major difference between Classical economists and Keynesian economists is tha..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd