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Sierra borrows $175,000 from Regional Home Finance Corporation to buy a home. The loan is a twenty-year, 3/1, adjustable-rate mortgage, with an initial interest rate of 4.0 percent for three years and potential increases of up to 3.0 percent to a cap of 11.0 percent. Before the loan is completed, the lender discloses the amount of the loan principal, the initial interest rate, the initial annual percentage rate, and associated fees and costs. Not disclosed are material details about the amounts of the payments when the interest rate changes. Before the first increase takes effect, Sierra decides that she wants to rescind the loan. What is a “twenty-year, 3/1, adjustable-rate mortgage”? Can Sierra rescind this loan? Why or why not?
Suppose that Home has 100 workers, a marginal product of 4 making apples, and a marginal product of labor of 4 making shirts. Foreign has 100 workers, a marginal product of labor of 8 making apples and a marginal product of labor of 6 in shirts. In n..
Choose a specific product that you use on a daily basis (such as food items, toiletries, or your car). Who are you (demographics, psychographics, etc.)? What do you do with the product (consumption, storage, disposal, etc.)? Where do you purchase the..
More than 85% of McDonald's restaurants around the world are owned by independent franchisees.
Consider two competitive consumers who have the same endowment, with positive current income plotted on the horizontal axis and positive future income on the vertical axis. Each consumer’s current income is taxed at the rate t1 and future income is t..
q1. what happened why did you leave the question and suddenly demand higher price?q2. how do i calculate the change in
Some examples of political problems associated with active discretionary fiscal policy are.... [Select two] Recognition lag taxpayer-funded favors to special interests Action (administrative) lag Operational (impact) lag
The federal government recently announced intent to buy large numbers of Treasury Bonds. Explain how the federal government expects this to improve the economy. Compare this to other companies buying their own stocks. Make a prediction as to the succ..
Draw a graph (hand-drawn is acceptable) that illustrates the demand and supply of a perfectly competitive industry. Indicate the following in your graph: the equilibrium price; the equilibrium quantity; the producer surplus if the industry is a monop..
What do real interest rates account for that nominal interest rates do not? The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of __________. A higher interest rate makes more attractive. Ther..
The loss to society resulting from a tax includes the
Which of the following is the best definition of the short run?
In the short-run, if a firm has decreasing returns, does it have increasing, constant, or decreasing marginal cost? Explain. What about if it has constant returns? Increasing returns? Explain.
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