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

Ppc, ppc shows microeconomics

ppc shows microeconomics

Inflation in Pakistan, I want to address Inflation in Pakistan but it itsel...

I want to address Inflation in Pakistan but it itself is a wide topic plz suggest me how to address Inflation to right a research article?????

Pooling, pooling in insurance

pooling in insurance

Micro, 2. a. Suppose the demand for saline solution is perfectly inelastic ...

2. a. Suppose the demand for saline solution is perfectly inelastic for contact lens wearers. If the government imposes a tax on saline solution, what occurs? Be sure to tell what

What is the short run demand curve, A firm has a short-run production funct...

A firm has a short-run production function defined by:  Q = -. 02L 2 + 8L What  is  the short  run demand curve  for  labour  (L) in terms of  the market wage  rate  (w), if

Microeconomics, Consider the market for purple magic markers. The demand fo...

Consider the market for purple magic markers. The demand for purple magic markers is perfectly elastic and the supply is upward sloping. If sellers of purple magic markers are taxe

Microeconomics, characteristics of microeconomics

characteristics of microeconomics

Market systems, what is a perfect competition and how does it differ from m...

what is a perfect competition and how does it differ from monopoly?

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