Trevor and Lynda bought a home in 2013 for $185,000 with a 20% down payment. Their mortgage payments were only applied to interest on the mortgage balance. In 2017, the couple sold their home for $148,000. What was the value of their equity?
a. 0
b. $37,000
c. $11,100
d. $18,500
a. 0
The value of their equity was $0.
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If the price of chicken rises from $1.25 per pound to $1.75 per pound, and the quantity demanded goes from 250 pounds per day to 175 pounds per day, this illustrates
A. the law of diminishing returns. B. the law of supply. C. the law of demand. D. the law of supply and demand.
The average number of times in a year each dollar is used to buy goods and service is called
A) rate of circulation speed. B) circulation rate. C) velocity of circulation. D) nominal GDP. E) inflation.
Ceteris paribus, if interest rates in the United States rise relative to those abroad, then the surplus in the U.S. capital account would
A. Grow larger and the dollar would appreciate. B. Become smaller and the dollar would depreciate. C. Become smaller and the dollar would appreciate. D. Grow larger and the dollar would depreciate.
The demand for loanable funds is downsloping:
A. because businesses find that more investments are profitable at low interest rates than at high interest rates. B. because households are willing to save more at high interest rates than at low interest rates. C. only when the nominal interest rate exceeds the real interest rate. D. because the amount of profitable business investment varies directly with the interest rate.