Would it make sense to buy a house when mortgage rates are 14% and expected inflation is 15%? Explain your answer
What will be an ideal response?
Even though the nominal rate for the mortgage appears high, the real cost of borrowing the funds is -1%. Yes, under this circumstance it would be reasonable to make this purchase.
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Refer to Figure 2-1. ________ is (are) inefficient in that not all resources are being used
A) Point A B) Point B C) Point C D) Points A and C
When differences in land quality and access to marketplaces are very large and population grows rapidly, the conditions are ripe for
a. increasing differential and location rents b. decreasing differential and location rents c. decreasing differential rents and increasing location rents d. increasing differential rents and decreasing location rents e. marginal physical product of land to increase
Labor unions made their largest membership gains in
A. 1900-1915. B. 1915-1930. C. 1935-1950. D. 1965-1980.
If Congress fails to pass a budget before the fiscal year starts, then federal agencies may continue to operate only if Congress has passed a:
A. balanced budget amendment. B. deficit reduction plan. C. conference resolution. D. continuing resolution.