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You Borrow Money to Buy a House in 2006 at a Variable

question 48

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You borrow money to buy a house in 2006 at a variable interest rate of 6.5%.Your interest rate is always 2% more than the rate of inflation.By 2009,the inflation rate has risen to 8.5%.Considering only your mortgage,is inflation good news or bad news for you?


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Originating from Austria, Sigmund Freud was a neurologist who created psychoanalysis, a methodology for the treatment of mental disturbances via conversational engagement between a psychoanalyst and a patient.

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