Buy custom Making Money From Inflation
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1345 |
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A mortgage is very safe because the rate remains constant throughout its life, even thought the inflation rates will climb. Let's take a look at an example. Prices are skewed because it was done in 1980. "Taking a life savings of $8,000 and bought a home for $46,500, paying for it with a 20 year government-guaranteed 6 ?% mortgage...
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Let's take a look at an example. Prices are skewed because it was done in 1980. "Taking a life savings of $8,000 and bought a home for $46,500, paying for it with a 20 year government-guaranteed 6 ?% mortgage. Twelve years later, you still owe $30,000 on the mortgage, but because of inflation that $46,500 house is now worth about $250,000...
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General points of the essay
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What actions might a government take in order to reduce the rate of inflation in the economy?
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