Answer:
Currently the price of homes has exceeded the 2006 peak, just before the housing bubble burst. The price index has increased more than 40% since 2012.
It has been many years now of a strong economy, with an economic expansion lasting for 11 years (since June 2009), which is actually record breaking. A lot of economists were expecting a recession soon, with the current health crisis not helping, and the recession finally arrived on June 2020.
The combination of historically high prices for homes and an economic recession can be very hurtful. The advantage of the current situation is that the level of delinquent or subprime mortgages is currently much lower than 14 years ago. Actually, the amount of debt per household has decreased since 2006, and is quite stable right now at moderate or low levels. Many households spent much of the past years paying off debt, so they didn't have time to take new debt.
If the recession gets worse, a price correction will be inevitable, but it wouldn't be as large as the 2007 decrease. Only in a few cities in California, Washington, Nevada and Oregon can you find situations similar to 2006, where a strong supply hasn't been enough to balance the prices due to a stronger demand and high mortgage debt. But even there, the situation will not be as bad.
Answer:
The explanation of that situation is below.
Explanation:
To begin with, the most important factor to have in mind in the situation explained above is the fact that we are talking about a "luxury good" and therefore that when it comes to this type of goods is better when the majority of the people do not possess or at least they must represent the fact that they are exclusive for only some part of the population. That is why that those goods use the strategy of increase always the price because that will means that they are not affordable for the majority of the society but only for a few and that will give to the owner of the good a sense of uniqueness and with that it also comes the sense of superiority. That is why that when it comes to this type of good the analysis change and it collides with the other theory of utility maximation.
The maturity risk premium on the 2-year Treasury security is C. 1.39%
Using this formula
rd = r* + IP + MRP
Where
rd represent Required rate of return on 2-year Treasury Security = 6 75%
r* represent real risk free return = 3.18%
IP represent Inflation Premium = 2.18%
MRP represent Maturity Risk Premium
Let plug in the formula
6.75% = 3.18% + 2.18% + MPR
6.75%=5.36%
MRP=6.75% -5.36%
MRP = 1.39%
Inconclusion the maturity risk premium on the 2-year Treasury security is C. 1.39%.
Learn more here:
brainly.com/question/15314847
5,200 + 21,000 + 1,300 + 1,200 = 10,400 ÷ 10 totally investment 1,040 %
Answer:
a. Production decreased by 4 percent
Explanation:
In 2009, production: 60,000 units
Hours worked per day: 80x8= 640 hours
Productivity= 60,000/640 hours =93.75 units per day
In 2010: production: 76 500 units
Hours worked per day= 85x10= 850 hours
productivity= 76,500/850= 90 units per day
In 2010, production decreased by 3.75 per day. (93.75-90.00)
percentage decrease= (3.75/93.75) x 100=4
In 2010 production decreased by 4 percent
