Question
1) (5 points) Please list the following macroeconomic shocks under the most appropriate column heading. List the shock by its letter (A, B, C, D,
1) (5 points) Please list the following macroeconomic shocks under the most appropriate column heading. List the shock by its letter (A, B, C, D, and E). A. Tax increase B. Open market asset purchases by the Fed C. Wildfires kill people and destroy structures and equipment D. Cut in military spending E. Breakthrough in technology improves price/performance ratios for batteries Demand Shocks Negative Positive Supply Shocks Positive Negative 2) ((5 points) a) You buy a house for $1,000,000, putting $200,000 down and borrowing $800,000 from a mortgage lender. One day later, One day later, the value of the house, according to Zillow, is $1,100,000. What has been your one day rate of return on your investment? $900,000. b) Instead of rising, the house has, after one day, dropped in value to What is the value of your home equity?
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