A consumer sensitivity to interest rates, Microeconomics

Assignment Help:

Interest rate sensitivity can also be understood from another perspective.  The total cost of a commodity is not just its price, but also what must be paid to borrow money to purchase that item.  With modern views of immediate gratification, it is rare for someone to save to purchase a house, or any other big ticket item, what is more common is to borrow the money, buy the item, and make instalment payments.  Thus the interest charges are a part of the total cost of acquiring that big ticket item - as consumer sensitivity to interest rates when buying a house or a car.

 


Related Discussions:- A consumer sensitivity to interest rates

What is fait money, Fiat money is what is regular in modern economic system...

Fiat money is what is regular in modern economic systems.  Fiat money is money that is described as legal tender by either a government or some organization with the authority to e

Choices , why is choice inevitable in the understanding of economics scienc...

why is choice inevitable in the understanding of economics science?

What are the functions of money, Functions of Money Money performs sev...

Functions of Money Money performs several important functions. It serves as a medium of exchange, a unit of account, a store of value and a standard of deferred payments. In a

Required the Detail Answer, Sir i am the student of MSC Economcis frin Dust...

Sir i am the student of MSC Economcis frin Dustabce University (AIOU)from Islamabad (Pakistan)my name is Mohammed Bilal Farooq and required the answer of the following questions Q

ENVIRONMENTAL POLLUTION , Environmental pollution may be eloborate as the c...

Environmental pollution may be eloborate as the contamination of the environment, with harmful wastes arising mainly from human activities. All these activities release certain m

Cost funtion, pls i want to estimate a cost function for the data i coollec...

pls i want to estimate a cost function for the data i coollected from a research on cassava production .i have the cost for each input and output but do not how to go abo0ut it.

Preferences toward risk, PREFERENCES TOWARD RISK * Choosing Among Risky...

PREFERENCES TOWARD RISK * Choosing Among Risky Alternatives - Assume - Consumption of a single commodity - The consumer knows all probabilities - Payoffs measured i

Theory of second best, what is the theory of second best? prove the theorem...

what is the theory of second best? prove the theorem with the help of a diagram.

Economical and social policy, Topic: Please choose a case study in water re...

Topic: Please choose a case study in water related area and analyse it from at least two angles (or more) by examining the technical side as well as the economical, social and poli

Rational producer, In the context of managerial economics how do you explai...

In the context of managerial economics how do you explain a rational producer. Illustrate giving example covering different dimention.

Write Your Message!

Captcha
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