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• Write a 1,750- to 2,450-word word paper in which you decide whether to purchase a house.
o Describe which principles of economics directly relate to your purchasing decision.
o Compare the marginal benefits and the marginal costs associated with your purchasing decision.
o Explain how the strength of the economy as a whole affected the marginal benefits and the marginal costs associated with that decision.
o Consider the roles of the domestic economy and international trade in your assessment of the strength of the economy.
o Determine what situations or conditions could have led you to make a different decision.
• Assume for this project that purchasing a new home is a major decision requiring a substantial financial outlay where the wrong decision has long-term financial consequences.
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The discount rate for the stock is 15% and the rate of return on reinvested earnings is also 15%
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