Purchase Solution

Economic Indicator Forecast on the homebuilding Industry

Not what you're looking for?

Ask Custom Question

1) Interest rate (for example: mortgage rate, prime interest rate, fed funds rate, discount rate, three month treasury bill, 10 year treasury bond)

Included in the paper should be an explanation of the differences among the forecasts for the economic indicator and a rationalization for which forecasts you believe are most accurate. Also, how does the chosen forecast effect operational and planning issues in the home building industry? Defend your opinion in your paper.

Purchase this Solution

Solution Summary

Economic Indicator Forecast on the homebuilding Industry is modeled.

Solution Preview

Economic Indicator Forecast Paper on the homebuilding Industry

I need help in preparing a paper in which I compare and contrast at least two different, two-year forecasts from two separate sources, for the indicator below.

1) Interest rate (for example: mortgage rate, prime interest rate, fed funds rate, discount rate, three month treasury bill, 10 year treasury bond)

Included in the paper should be an explanation of the differences among the forecasts for the economic indicator and a rationalization for which forecasts you believe are most accurate. Also, how does the chosen forecast effect operational and planning issues in the home building industry? Defend your opinion in your paper e

The price, or cost, of debt capital is the interest rate.
The real rate of interest is approximated by taking the nominal interest rate and subtracting inflation. The real interest rate is the growth rate of purchasing power derived from an investment.

Following factors affect interest rates:
1) Supply versus demand of investment funds

This will affect the interest rates. For example tight monetary policy results in short term interest rates being higher than longer term rates. It's because of tightening of supply of money leads to increase in short term interest rate. This occurs as a shortage of money and credit drives up the cost of short term capital. Longer term rates can stay lower, if the investors see loosening of monetary policy in long term ...

Purchase this Solution


Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.