Explain the consumer debt and home equity debt

Assignment Help Microeconomics
Reference no: EM13197364

The Tax Reform Act of 1986 eliminated the deductibility of interest payments on consumer debt mostly credit cards and auto loans but maintained the deductibility of interest payments on mortgages and home equity loans.

What do you think happened to the relative amounts of borrowing through consumer debt and home equity debt?

Reference no: EM13197364

Questions Cloud

Explain critical thinking to the decision-making process : Apply critical thinking to the decision-making process by discussing workplace examples that highlight each of the three different types of thinking you have examined in this paper.
Explore your main idea of problem related to health : Effect of drug abuse on specific cultures or groups. Is there a specific cultural group or population that has demonstrated increased consumption of alcohol leading to increased alcoholism and related problems? Is special or more specialized treat..
Define hospital be as attractive to physicians : why doesn't it also apply to nursing homes? Would a doctor-owned, for-profit hospital be as attractive to physicians as a nonprofit hospital?
Fundamental factors of your selected bank : Examine the fundamental factors of your selected bank. On the basis of this fundamental analysis and other methods of share valuation, determine if your selected bank is overvalued or undervalued.
Explain the consumer debt and home equity debt : The Tax Reform Act of 1986 eliminated the deductibility of interest payments on consumer debt mostly credit cards and auto loans but maintained the deductibility of interest payments on mortgages and home equity loans.
Describe the acting is impressive across the boards : What makes The Dark Knight fairly unique among comic book movies is the focus on acting and storytelling. The acting is impressive across the boards. Bale, Oldman, Ledger, Caine, Morgan Freeman, and Aaron Eckhardt all excel in their roles. Unlike ..
Is there a binding contract to build the road : In 1994, the Dryden Construction Company contracted with the Ontario Hydro Electric Power Commission to build an access road 7 miles long from its Manitou Falls generating station to Provincial Highway No. 105. The contract contained the following..
Describe the term god given freedom of the individual : The evolution of the concept of "God given freedom of the individual" stemming from the Protestant Reformation and developing through the American Enlightenment and the Great Awakening, and culminating with the Declaration of Independence.
What are the pros and cons of egans performance appraisal : What are the pros and cons of Egan's performance appraisal system Do you think it identifies the best employees Do you think it helps develop employees to perform the best they can Can increased sales be linked directly

Reviews

Write a Review

Microeconomics Questions & Answers

  Determine how many of each type of boot should be produced

Formulate a linear programming model for this problem and prepare the initial tableau if the problem is to be solved using simplex

  Explain the relationship between the magpie and the eagle

Explain the relationship between the Magpie and the Eagle and explain what would be the effect of a 10% increase in the income of the target market have on the demand for the Magpie

  Demand curve for einsteinss bagels

Calculate the price elasticity of demand for Einstein's Bagels and explain what it means and derive an expression for the (inverse) demand curve for Einsteins's Bagels.

  Describe opening of a coffee shop in downtown cookeville

Two employees will be hired at $10.00/hour/employee (including overhead and benefits). Each employee will work an average of 170 hours per month. The average revenue per customer is estimated at $7.00. The variable cost of serving each customer is..

  When will company revenue increase

Management attributes the increase in revenues to a 137 percent increase in shipments, despite a 17 percent drop in the average blended selling price of its line of phones. Given this information, is it surprising that the company's revenue increa..

  Describe short-run decision or long-run decision

Bob's lawn mowing service is a profit-maximizing competitive firm. Bob mows lawns for $27.00 each. His total cost each day is $280 , of which $30 is a fixed cost.

  Demand-supply and the determination of market price

Calculate the market demand for strawberries and plot it on a graph. On the same graph plot the supply function using the data in column A. What are the equilibrium price and equilibrium quantity?

  Determine qaly value

Suppose the recipient of a kidney transplant has stated that she would prefer 5 years of perfect health to the 10 years she expects to live with her transplant.

  Magazine article highlights perfectly competitive situation

When thinking about the theory of the firm, shirking, and principle-agent problems, we can find analogous situations in our personal lives. Make a Power Point presentation (for sharing with the class) two personal situations to illuminate this con..

  Product-specific decisions at the lower level

Even before the metals and manufacturing companies described earlier, U.S. railroads in the nineteenth century were M-form organizations based on geography

  Explain the short term and long term effects

A major breakthrough that allows for on-site generation of electricity for an investment in the generating capacity but after that essentially a zero variable cost of electricity.

  What is the firm inverse demand function

Assume you're the manager of Alpha Enterprises, a firm that holds the patent that makes it the exclusive manufacturer of bubble memory chips. Based on the estimates provided by the consultant

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