Reference no: EM132126367
Question: (A) Peggy buys a house for $200,000, with a monthly mortgage payment of $2,000. The current interest rate is 8%. A year later, the interest rate drops to 7% and her monthly payment falls to $1,800. What happens to GDP, NI, PI, C, and SP?
(B) Peggy decides to remodel the house at a cost of $50,000, and gets a second mortgage, which boosts her monthly payment to $2,300. What happens to GDP, NI, PI, C, I, and SP?
(C) The municipal taxing authority decides to boost her real estate taxes from $4,000 to $5,000 based on the increased value of house. What happens to GDP, NI, PI, C, and SP?
|
What happens to wages and salaries and national saving
: Under the new regime to end welfare, all these people are hired by the government to perform various tasks, such as serving lunch in the Congressional dining.
|
|
Calculate gnp based on the given data
: Last year, assume that McDonald's had a profit of $1.2 billion, of which $0.8 billion was earned in foreign countries. Toyota had a profit of $2 billion.
|
|
Why do humans come together in civil society
: Why do humans come together in civil society? What would Locke argue? What does Hobbes argue? Do you agree more with Locke or Hobbes and why?
|
|
How components of consumption and investment are affected
: Joe buys a Buick. To keep it simple, ignore the sales tax. In all cases the cash price of the new car is $25,000. Show how components of consumption.
|
|
What happens to gdp and sp
: Peggy buys a house for $200,000, with a monthly mortgage payment of $2,000. The current interest rate is 8%. A year later, the interest rate drops to 7%.
|
|
What is the amount of each interest payment
: A bond has a 7% coupon and pays interest semi-annually. What is the amount of each interest payment if the face value of a bond is $1,000
|
|
Was it easy or difficult to understand the challenging
: Why do you think it was easier to understand what you were reading while listening to some music and not to others?
|
|
Write a report on a contemporary news story
: Write a report on a contemporary news story about an organisation. You will be provided with the new story that is to be the focus of your report
|
|
What they learned from the assignment
: Reflection - the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned.
|