Without a tax increase there will soon be runaway inflation. But Congress refuses to raise taxes. Thus, before long there will be runaway inflation. That means that you should borrow all the money you can right now.

1. Without a tax increase there will soon be runaway inflation
2. Congress refuses to raise taxes
3. Thus, before long there will be runaway inflation (1,2)
4. You should borrow all the money you can right now. (3)

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

Any point on a country's production possibilities frontier represents a combination of two goods that an economy:

Aborrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. the first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. on the reset date, the composite rate is 6%. what would the year 3 monthly payment be?