How do variable interest rate loans protect creditors

Assignment Help Microeconomics
Reference no: EM13206033

Many home mortgages in recent years have been made with variable interest rates. Typically, the interest rate is adjusted once a year based on the current rates on government bonds. How do variable interest rate loans protect creditors from the effects of unexpected inflation?

Reference no: EM13206033

Questions Cloud

Find demand for domestic products from foreign buyers : Use a supply and demand diagram to illustrate the following conditions a. Cost -push inflation caused by a labor union successfully negotiating for a higher wage. b. Demand-pull inflation caused by an increase in demand for domestic products from for..
Define how technology has changed the ways : Define how technology has changed the ways to make reservations for airline tickets
What is the unemployment rate among the surveyed people : Suppose 500 people were surveyed, and of those 500, 450 were working full time. Of the 50 not working, 10 were full-time college students, 20 were retired, 5 were under 16 years of age , 5 had stopped looking for work because they believed there w..
Discuss the cost of medical advances on health care : Discuss the cost of medical advances on health care.
How do variable interest rate loans protect creditors : Many home mortgages in recent years have been made with variable interest rates. Typically, the interest rate is adjusted once a year based on the current rates on government bonds. How do variable interest rate loans protect creditors from the ef..
Historical philosopers that started beginning of formal : Historical philosopers that started the beginning of formal discipline?
Are you officially unemployed and discourage worker : Suppose you are able bodied and intelligent, but lazy. You would rather sit home and watch tv than work, even though you know you could find an acceptable job if you looked. a. Are you officially unemployed b. Are you a discourage worker
Discuss implications of each in terms of marketing strategy : What examples of the major types of buying situations do you see in the case study of boeing? Discuss the implications of each in terms of marketing strategy?
What is the optimal degree of air cleanliness after change : Suppose that a state provides subsidies for a company to build plants that contribute to air pollution. Cleaning up this pollution causes the marginal cost of air cleanliness to rise by $210,000 at each degree of air cleanliness. What is the optim..

Reviews

Write a Review

Microeconomics Questions & Answers

  Determining own-price elasticity

Assume that the price was 5% lower and all other factors do not change. How much more would you buy each year? Using this information, compute the own-price elasticity of your demand.

  Determining price of labor and capital

Given production function Q= 100(L^0.5)(K^0.5), where L = labor hours per unit time, K=machine hours per unit time, and Q=output per unit time.

  Computing incremental profit

Calculate the incremental profit that south park would earn by customizing its instruments and marketing them directly to end users.

  What could account for faster upward shifts

If interest rates or opportunity costs investment, happened to be the same in both developed countries and emerging economy nations, what could account for faster upward shifts in the latter group's planned investment functions Are stocks of produ..

  Determine what will the new equilibrium price

Assume the following data describe the gasoline market: Price per gallon $2.00 2.25 2.50 2.75 3.00 3.25 3.50 Quantity Demanded 32 30 29 28 22 21 20 Quantity Supplied 16 20 24 28 32 36 40 (a) What is the equilibrium price?

  Cost of capital analysis

Describe the importance of cost of capital with respect to the actual financial problem of most manufacturing companies.

  Indifference curve-budget line analysis

Use an indifference curve-budget line analysis to depict the situations, prior to the ban on smoking, of a student who smoked on campus, and of a student who did not smoke.

  What is the current equilibrium level of gdp

An economy is currently in equilibrium and the following figures refer to elements in its national accounts and what is the current equilibrium level of GDP and what is the level of injections

  Determining taxes on property

Johnson Inc. is notified that local property taxes have raised. Johnson's economist states this will increase our cost of production and shift up our average total cost curve, average variable cost curve.

  Determining marginal revenue and marginal cost

Find out the Marginal Revenue and Marginal Cost

  Construct the coutrnot profit function

Construct the Coutrnot profit function. Differentiate this function and solve for the reaction functions of firm one and firm two.

  Briefly list and elaborate on the factors of demand

Briefly list and elaborate on the factors that will be affecting the demand for the following products in the next several years. Do you think these factors will cause the demand to increase or decrease?

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