Discuss what would happen to the discount factor for mortgages under the following circumstances: a. A recession

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Discuss what would happen to the discount factor for mortgages under the following circumstances:

a. A recession is expected in the near future

b. The Fed has taken action to raise interest rates

c. International fi nancial crises have caused an infl ow of funds into the United States

d. The federal government is running a larger surplus than expected.           Appendix

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An Introduction To Financial Markets And Institutions

ISBN: 978-0765622761

2nd Edition

Authors: Maureen Burton ,Reynold F. Nesiba ,Bruce Brown

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