Internet Exercise #60 >>

>> TITLE Mortgage Interest and the Economy >> SUMMARY And URL We've all noticed the headlines about mortgage rates being at 40-year lows. But what does that rate translate to economically? How does it impact us on a micro and macro level? The purpose of this exercise is to get you to think about some of the things, in this case mortgage rates, that you see in the popular press and how those things impact the economy. The following series of questions will require you to think about some of the connections between business activity and the economy and stretch your understanding of economics. http://www.bankrate.com/brm/default.asp >> questions with answers What is the average 30-year fixed mortgage rate? What impact do mortgage rates have on the economy? What other areas of consumer spending might be impacted by lower mortgage rates? What is the average home equity rate of interest? >> Summary The purpose of this exercise is to force you to begin making links between textbook material and the business activity we see on the nightly news. Mortgage rates are just one example. Start thinking through news reports and ask yourself some questions about how that particular item will impact the economy on a micro and macro level. Is it significant enough to matter? What chain of events might be started as a result? And so on. © 2004 Prentice-Hall, Inc. | A Pearson Education Company Legal Notice | Privacy Policy