Answer:
Normal goods have a positive relationship with income & purchasing power parity (PPP) with an increase in income ( I ) consumption of normal goods also increased respectively.
So, with the increase in students' income consumption of Pizza will be increased
As normal goods have a positive income elasticity of demand coefficient but it will be less than one.
Explanation:
Let’s discuss the normal goods, as a decrease in the price of normal goods its consumption will boost or increase. As when normal goods become cheaper, they will be consumed much as we know that people will consume them because of the logical reasoning of cheaper than its substitutes. Likewise, with an increase in income, its consumption will also increase but at a stage where it will become inelastic or constant.
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Answer:
the options are missing, so I looked for them:
a. The buying of government bonds leads to lower interest rates, thereby reducing private investment.
b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.
c. The selling of government bonds leads to lower interest rates, thereby reducing private investment.
d. The buying of government bonds leads to higher interest rates, thereby reducing private investment.
the answer is:
b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.
Explanation:
The crowding out effect happens when the government increases its spending level in order to engage in an expansionary fiscal policy but someone needs to pay for this extra spending. In order for the government to finance their spending, they have to choose to either increase taxes or issue more debt. When they issue more debt, they end up decreasing private investment since money that could be used by private companies is used by the government instead.
A down payment is a <span>partial payment given in order to show intent of purchase. When you intend to make a purchase of an item but do not have the means to pay in full or if a full upfront payment is not required, a down payment may be. A down payment can be a set amount or percentage that is agreed upon by the purchaser and the seller for the intent to purchase the item in full. In most cases, there is a contract outlining the partial down payment and then when everything is due in full. </span>
Answer:
c. Because it is a fixed-rate mortgage, the monthly loan payments (which include both interest and principal payments) are constant
CORRECT The interest will decrease while principal increase leaving a net effect of zero through the life of the loan
Explanation:
a. The outstanding balance declines at a slower rate in the later years of the loan's life
FALSE the principal decreases at a higher rate in the lather years as the interest component decreases.
b. The remaining balance after three years will be $225,000 less one third of the interest paid during the first three years
FALSE to know this we need to know the rate
d. Interest payments on the mortgage will increase steadily over time, but the total amount of each payment will remain constant
FALSE as a portion of the principal is being paid, the interest component decreases over time
e. The proportion of the monthly payment that goes towards repayment of principal will be lower 10 years from now than it will be the first year.
FALSE the porportion to pay the principal increase through time.
