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Author Question: You borrow money to buy a house in 2009 at a fixed interest rate of 5.5 percent. By 2012, the ... (Read 26 times)

genevieve1028

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on: Jun 30, 2018
You borrow money to buy a house in 2009 at a fixed interest rate of 5.5 percent. By 2012, the inflation rate has steadily fallen to 1.5 percent from the recent high of 3.0 percent in 2009.
 
  Considering only your mortgage, is inflation good news or bad news for you?
  A) bad news, because it makes the nominal value of your mortgage payments increase
  B) bad news, because it makes the real value of your mortgage payments increase
  C) good news, because it makes the real value of your mortgage payments decrease
  D) bad news, because inflation hurts everyone

Question 2

Seasonally adjusted unemployment rates
 
  A) are the same as the unadjusted rates in periods of bad weather.
  B) are not calculated for the U.S. economy.
  C) adjust for the predictable summer increase in the unemployment rate for teenagers.
  D) adjust for the predictable summer decrease in the unemployment rate for teenagers.
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
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dudman123

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

C


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