discussion 2 econ and finance

Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Sketch a demand and supply diagram to support your answer.  People gain confidence that the economy is growing and that their jobs are secure.

Historically, usury laws that put below-equilibrium ceilings on interest rates have been used by some states to make credit available to poor people who could not otherwise afford to borrow. Critics contend that poor people are those most likely to be hurt by such laws. Which view is correct?

Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Sketch a demand and supply diagram to support your answers.  Because of a threat of war, people become uncertain about their economic future. The overall level of saving in the economy diminishes.  The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.

Illustrate graphically the effect the credit market crisis in the United States in 2008 had in the market for existing single-family homes. Assuming the demand for existing single-family homes is relatively inelastic, what is likely to happen to the total revenues of home sellers as a result of the credit market crisis?

The market interest rate is 9 percent and is expected to stay at that level. Consumers can borrow and lend all they want at this rate. Would you prefer a $350 rebate on a $7,000 car or one year of financing for the full price of the car at 0 percent interest? You would What if the interest rate were 13 percent? If the interest rate were 13 percent, then you would prefer the financing be indifferent prefer the rebate

Identify a financial market and describe it using an economic approach. What are the goods exchanged? How is the supply set? How is the demand set? What are the constraints that are potentially preventing the market reaching an equilibrium? Reflect on how your new understanding of fundamental economic functions can apply or will apply to your professional experience. Identify a key area where you could apply this new knowledge and explain how it will help you to provide a better analysis of the economics forces at work.

Discuss the effect that the COVID-19 pandemic has had on credit creation, citing relevant examples.

Credit rationing and the financial accelerator are responsible, in part for a) the significant volatility of gross private investment B) the significant volatility of real personal consumption C) smoothing gross private investment during severe recessions. D) smoothing real personal consumption during expansions. During recessions, the value of collateral decreases and corporate profits decrease, so firms do not have cash to finance new investment projects. Therefore, credit rationing depends on state of the economy. This situation is known as the A) risk acceptance cost. B B) lender's dilemma c) default premium D) financial accelerator Pls solve asap

Major energy companies have recently started moving their investments away from oil exploration due to the emergence of renewable energy as a credible alternative. Yet the government of Ghana has decided to borrow money to invest in oil exploration. Do you agree with the government’s decision? Explain your stance.

Saved You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $45,000 annually. You own a home with a $150,000 mortgage, and you owe $11,600 on car loans, $7.200 in personal debt, and $3.250 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. You estimate that funeral expenses will be $8.000. Estimate your total insurance needs using the DINK method. Total insurance need ces

​​​​​​Construct a well-labeled diagram of supply and demand in the market for loans that depicts an equilibrium with credit rationing. Be sure to clearly identify the market interest rate, the quantity of loans supplied and the quantity of loans demanded.

In 2010 the Greek government had to inform the European Commission on how it would control its budget deficit and improve the performance of its economy. The government’s debt is so high that agencies assessing the creditworthiness of the government downgraded it (which would mean more interest has to be paid to raise finance). Proposals were likely to include a 10% cut in government spending. Questions Outline two possible economic objectives of the Greek government. Explain why the government’s budget deficit might be in a large deficit. What would the effect on aggregate demand be if the government cut public spending by 10%?

why would cancelling student debt be bad for the economy

One major legal challenge for employers can be the "two-hat" problem? What does this refer to? Group of answer choices If the employer is insolvent to determine whether it should start bankruptcy proceedings under the Companies' Creditor Arrangement Act or under the Bankruptcy and Insolvency Act If the employer has to decide whether it should allow an employee to unlock his/her money from the employer- sponsored pension plan or not If the employer has multiple pension plans but not enough money to contribute to all plans to decide to which plan it makes contributions If the employer ends up in a conflict of interest position in its roles as sponsor and administrator of a pension plan

The market interest rate is 9 percent and is expected to stay at that level. Consumers can borrow and lend all they want at this rate. Consider each of the following situations. 1) Would you prefer a $500 gift today or a $540 gift next year? 2) Would you prefer a $100 gift now or a $500 loan without interest for four years? 3) Would you prefer a $350 rebate on an $8000 car or one year of financing for the full price of the car at 0 percent interest?

Suppose you buy a house for $250,000. One year later, the market price for the house has fallen to $200,000. What is the return on your investment in the house if you made a down payment of 10 percent and took out a mortgage loan for the other 90 percent?

A government is facing a significant budget deficit due to high levels of public spending and declining tax revenues. To address this, several measures are being considered, including cutting public expenditures, increasing taxes, and implementing more efficient tax collection methods. The impact of a budget deficit on an economy can include increased national debt and potential inflationary pressures. In this situation, the most effective approach to address the budget deficit would be:A) Borrowing more funds internationallyB) Cutting essential public servicesC) Increasing taxes and improving tax collectionD) Privatizing all public services   Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.

What support has been given for student loans during covid-19? How bad is the student debt crisis and how should the nation tackle that debt?

! Required information A sports mortgage is the brainchild of Stadium Capital Financing Group, a company headquartered in Chicago, Illinois. It is an innovative way to finance cash-strapped sports programs by allowing fans to sign up to pay a "mortgage" over a certain number of years for the right to buy good seats at football games for several decades with season ticket prices locked in. The locked-in price period is 50 years in California. Assume you and your brother went to UCLA. Your brother, Harold, purchases a $40,000 mortgage and pays for it now to get season tickets for $290 each for 50 years, while you, being a three-time alumnus of the same university, are able to buy season tickets at $390 in year 1, with prices increasing by $20 per year for 50 years. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Which of you made the better deal at an interest rate of 8% per year? The present worth of Harold's investment is $-…

! Required information A sports mortgage is the brainchild of Stadium Capital Financing Group, a company headquartered in Chicago, Illinois. It is an innovative way to finance cash-strapped sports programs by allowing fans to sign up to pay a "mortgage" over a certain number of years for the right to buy good seats at football games for several decades with season ticket prices locked in. The locked-in price period is 50 years in California. Assume you and your brother went to UCLA. Your brother, Harold, purchases a $20,000 mortgage and pays for it now to get season tickets for $290 each for 50 years, while you, being a three-time alumnus of the same university, are able to buy season tickets at $390 in year 1, with prices increasing by $20 per year for 50 years. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Which of you made the better deal at an interest rate of 8% per year? and the present The present worth of Harold's…

Lending institutions charge different interest rates for different classifications of mortgages. Two of these mortgage types are Alt-A mortgages and subprime mortgages. Alt-A mortgages generally carry a higher interest rate than a typical “prime rate” mortgage, and subprime mortgage rates are generally even higher than Alt-A rates. What is the likely economic justification for the higher interest rates for these two types of mortgages?

With the biting economy and dwindling levels of income, many Microfinance clients have been affected and so MFIs are likely to experience low business and high defaults. As the CEO of the MFI in question, explain the measures you will take to tackle this challenge

We would like you to identify a financial market and describe it using an economic approach. What are the goods exchanged? How is the supply set? How is the demand set? What are the constraints that are potentially preventing the market reaching an equilibrium? Examples of financial markets are stock markets, corporate bonds, derivatives, money market, sovereign bonds. We would then like you to reflect on how your new understanding of fundamental economic functions can apply or will apply to your professional experience. Identify a key area where you could apply this new knowledge and explain how it will help you to provide a better analysis of the economics forces at work.

Suppose you return to college and earn an MBA, after which you get a middle-management position with General Mills, the firm that makes Lucky Charms and other breakfast cereals. If the tax rates are the same as in 2018 and your starting salary is $90,000, how much will General Mills pay on your behalf in federal social insurance taxes?

Q.1.19 Creditors and debtors tend to lose during an inflationary period since: (1) The nominal interest rate on their credit tends to fall; (2) The real value of their credit tends to decrease; (3) Debtors pay more in real terms; (4) The real interest rate on their credit remains constant. Q.1.20 Although government intervention in an economy is sometimes justified, governments may still fail when they intervene. Government failure occurs because: (1) Politicians often make decisions that win votes in the short term rather than making decisions that maximise long term economic prosperity; (2) Government organisations are largely bureaucratic and, as such are not subject to competition or under pressure to maximise profits; (3) Both statements (1) and (2) are correct; (4) Neither statement a nor b is correct.

Many countries have policies that limit how much interest a moneylender can charge on a loan. Do you think these limits are a good idea? Who benefits from the laws and who loses? What are likely to be the long-term effects of such laws? Tips:  For part 2, you may think about how a low interest rate would affect the poor and those who owe huge debts. For part 3, you may think about how it would affect the profitability of the banking sector and the supply of lending (will lenders be encouraged to lend more?), and what implications it may have for "credit rationing" (being credit constrained).

A7. You own a gold mine. The current market price of gold is $200 per ounce; the interest rate is 12%. The marginal extraction cost of gold is constant over time at $25. Under Hotelling's Rule, what price do you expect in two years' time? A8. The market interest rate is 5% and is expected to stay at that level. Consumers can borrow and lend all they want at this rate. Explain your choice for these situations: (a) Would you prefer a $500 gift today or a $540 gift next year? (b) Would you prefer a $100 gift now or a $500 loan without interest for four years? (c) You want to buy an $8000 car. Would you prefer a $350 discount or a full year off (at 0% interest) before you have to pay for the car?