People are more likely to buy houses
compute real interest rates (r = i - π) in both periods:
Before r = 5% - 2% = 3%
After r = 10% - 9% = 1%
Because the real interest rate that must be paid has decreased from 3% to 1%, more people are now likely to buy homes. The amount of money that people are paying back may be increasing, but because property prices have increased so quickly, the actual cost of financing homes has decreased. The real interest rate for acquiring a home has decreased from 3% (=5% -2%) to 1% (=10% 9%), which has increased the likelihood that people will do so. Thus, even if mortgage rates have increased, the actual cost of financing a home is reduced. (If tax deductions for interest payments are permitted, then the likelihood that individuals will purchase homes increases.)
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A business enterprise is a for-profit entity. there are different ways a business enterprise can be organized for legal and tax purposes. whatever the structure, the common element is the for-profit aspect.
The answer is mortgage broker or letter c. They are the ones who collect the documents required
from the person will borrow. He then
submits it to the mortgage lender where it will be examine and approved. If it does get approved, then the funds are
lent in the lender’s name. The broker
gets the original fee as compensation for his work.
Answer:
C. $6,000; Increase expenses, increase liabilities
Explanation:
The computation is shown below:
= Borrowed amount × rate of interest × given months ÷ Total months
= $400,000 × 6% × 3 months ÷ 12 months
= $6,000
So this $6,000 represent an increase in liabilities and increase in expenses
hence, the correct option is c.
Brainstorming and also the infinity diagram can be used in group decision making.