Explain and compare these four different scenarios on how

Assignment Help Microeconomics
Reference no: EM13379129

Explain and compare these four different scenarios on how mortgage, depreciation and tax expense impacts decisions on whether or not to purchase a single family income property as an investor.

Scenario 1: If the mortgage rate rises from 5% to 10% yet the appreciation of houses that consumers can buy rises from 2% to 9% would you be more likely or less likely to buy a house as an investor?

Scenario 2: If interest rates were able to be deducted from income, would you change your decision in Scenario 1?

Scenario 3: In the case of Scenario 2, if taxes on the property were fully deductable from income earned, would this change your decision from Scenario 1?

Scenario 4: How do depreciation costs on the house deducted from income affect the outcome on Scenario 1 during an inflationary or deflationary economy?

Reference no: EM13379129

Questions Cloud

1 john davis a recent ie graduate from tennessee : 1. john davis a recent ie graduate from tennessee technological university bought an suv for 30000 with a down payment
1 suppose the price elasticity of supply for new homes is : 1. suppose the price elasticity of supply for new homes is 0.25 in the short run and 1.05 in the long run.a. if the
Select a nation that has a low per capita income and : select a nation that has a low per capita income and discuss how the catch-up effect would work for that country.
1 suppose there is an increase in supply rightward shift in : 1. suppose there is an increase in supply rightward shift in supply. consider two graphs. in graph x demand is
Explain and compare these four different scenarios on how : explain and compare these four different scenarios on how mortgage depreciation and tax expense impacts decisions on
1 which of following is necessarily true regarding total : 1. which of following is necessarily true regarding total utility tu and marginal utility mu?a diminishing mu implies
An engineering freshman wants to purchase a laptop computer : an engineering freshman wants to purchase a laptop computer for use during the 4 frac12 years that she plans to study
Barry a texas crude company engineer who did not take : barry a texas crude company engineer who did not take engineering economy while studying at tech recommended that texas
John davis a recent ie graduate from tennessee : john davis a recent ie graduate from tennessee technological university bought an suv for 30000 with a down payment of

Reviews

Write a Review

Microeconomics Questions & Answers

  Jobs are the key to economic progress

Jobs are the key to economic progress. Unless we create more jobs, our standard of living will fall

  Six-firm concentration ratio-herfindahl-hirschman index

Suppose the market shares of the six largest firms in the industry are 12 percent each. Compute the six-firm concentration ratio and Herfindahl-Hirschman index for this industry.

  Find the variance

W(sub)a= 1/a1(Y1)+1/a2(Y2)+1/a3(Y3)+1/a4(Y4) where a(i) are the constants. a) What restriction on the ai is needed for Wa to be an unbiased estimator of mu? b) Find the variance of Wa.

  How the tannery and resorts profits combined

Consider a city with a river. The city has a resort whose visitors use the river for recreational purposes. The city also has a tannery that creates industrial waste which it dumps into the river.

  What is the break-even value for the investments duration

Assume $92,500 is an accurate estimate of the annual savings that will result from this investment, but it is not clear how long the machine will be used. Assuming that the salvage value decrease linearly from $500,000 to $50,000 over a 10-year in..

  Describe a recent foreign purchase

Globalization is becoming very important in economic discussions. While some politicians favor protectionist policies because they feel these policies protect domestic producers, others claim free trade increases economic activity and has advantag..

  1 college education provides higher income for the

1. college education provides higher income for the individual but also a more productive and more educated person who

  Economists have observed that spending on restaurant meals

Economists have observed that spending on restaurant meals declines more during economic downturns than does spending on food to be eaten at home. How might the concept of elasticity help to explain this phenomenon?

  Joe enjoys fishing amp goes out about 20 times per year one

joe enjoys fishing amp goes out about 20 times per year. one day sara told him that fishing is too expensive of a

  1 in a market system well-defined property rights are

1. in a market system well-defined property rights are important because theyreduce unnecessary investment. limit

  Which goods the government would prefer to tax

Using the elasticity estimates in the table above, classify the price elasticity demand as elastic or inelastic. Explain your reasoning. Explain the implications of those classifications on tax revenue collections when the per-unit tax increases a..

  Affect the performance of the economy

The federal government employs a budget plan over several fiscal years that results in significant increases in the national debt, with no relief or plans to deal with the problem.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd