A consumer sensitivity to interest rates, Microeconomics

Assignment Help:

Interest rate sensitivity can also be understood from another perspective.  The total cost of a commodity is not just its price, but also what must be paid to borrow money to purchase that item.  With modern views of immediate gratification, it is rare for someone to save to purchase a house, or any other big ticket item, what is more common is to borrow the money, buy the item, and make instalment payments.  Thus the interest charges are a part of the total cost of acquiring that big ticket item - as consumer sensitivity to interest rates when buying a house or a car.

 


Related Discussions:- A consumer sensitivity to interest rates

Determine the nash equilibrium, Player 2   C ...

Player 2   C B A 1,2 3,2 B 2,3 a, b         Player 1

Substitute product, If we have two products, A and B, which are substitutes...

If we have two products, A and B, which are substitutes, we can expect that a rise in the price of A (or B) will cause the demand for B (or A) to go up.” Examine this statement wit

Basic calculus technique, Suppose that the total revenue function of a firm...

Suppose that the total revenue function of a firm is given by TR(q) = 120q - 2q^2, where q is the level of output. Find the level of output q that will maximize the firm’s total re

Determine he combined production of fiber optic cable , Graph the following...

Graph the following example and answer the questions: The United States and Japan only produce two goods.  They have the same fixed resources and they are equally efficient, and bo

Health and life expectancy, Health and Life Expectancy: In addition t...

Health and Life Expectancy: In addition to struggling on low income, many people in the developing nations fight a constant battle against malnutrition, disease and ill healt

The great depression, How did fixed exchange rates and the Golden Standard ...

How did fixed exchange rates and the Golden Standard affect the U.S. economy as well as other countries.

Explain briefly the other defence strategies, Find a recent hostile takeove...

Find a recent hostile takeover in Europe and compare the European takeover tactics and defences to those tactics and defences in US. In your opinion do you think the targeted firm

Analyze the economic factors, Question 1: Using relevant examples to il...

Question 1: Using relevant examples to illustrate your arguments analyze the different economic impacts of tourism and discuss the different ways in which government can maximi

Write Your Message!

Captcha
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