Ass4 - keep rising because of population growth 4 What is a p/e ration and how is it related to the house-price-to-income ratio 5 Why did the

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Econ 102 Roger E A Farmer Fall 2008 Assignment for Week 4 Read the article “Castles in Hot Air” Economist Magazine Oct 12 2004. 1. How does inflation affect the payments on a loan? 2. Explain in words to your roommate who is not studying economics – what is meant by the real after tax mortgage rate. 3. What argument would you raise against someone who argued that house prices must
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Unformatted text preview: keep rising because of population growth? 4. What is a p/e ration and how is it related to the house-price-to-income ratio? 5. Why did the economist magazine think that houses were overvalued in 2004? 6. What is meant by a bubble in the housing market? 7. Did Alan Greenspan think there was a bubble in the US market? Do you think he was right?...
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This note was uploaded on 06/30/2009 for the course ECON 102 taught by Professor Serra during the Fall '08 term at UCLA.

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