Classify each of the following in terms of their effect on i…
Classify each of the following in terms of their effect on interest rates (increase or decrease):I. Tax rates on income go up across the boardII. Near term spending needs decreaseIII. The Fed decides to do another round of monetary expansion (easy, free money for all)
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Students are encouraged to show all their work. Amelia Martinez has determined the following information about her own financial situation. Her checking account is worth $600 and her savings account is worth $1,200. She owes $76,800 on her home and the home has a market value of $156,000. She has furniture and appliances worth $15,500 and a laptop worth $4,400. She owes $6,000 on her car which has a market value of $11,000. She has recently purchased a mutual fund worth $5,600 within her retirement account that now reports a balance $56,000. Using the data above, help Amelia prepare a balance sheet. What is the total value of Amelia’s assets? What is Amelia’s net worth? What advice would you offer regarding the allocation of Amelia’s items on the balance sheet?
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