1. Which statement(s) are true

a. higher expected inflation would cause people to delay purchases

b. the shortcut for the fisher equation is to subtract the inflation rate from the nominal interest rate

c. the fisher equation is a way to calculate peoples risk tolerance

d. Both answer 1 and 2

e. Both answer 1 and 3

2.Before credits you have a tax liability of $4,000.Given the choice of the following which would you choose?

a. a $1,200 deduction on your tax return

b. $1,000 credit on your tax return

c. $800 in cash

d. $999 in lottery tickets

e. Both answers 1 and 2 because they are equal

You want to buy a 1.9 million dollar house in Venice beach.You want to know your payment. You plan to put a down payment of 20% on the house.

What amount would you enter for FV on your calculator to determine the payment? (use end mode)

1. 0
2. $380,000
3. $1,520,000
4. $1,900,000
5. none of the above