1050 word Analysis decision making process on influence of household decision making purchase, economics homework help

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Economics

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Locate retrieve and evaluate macroeconomics indicator

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Purpose of Assignment To locate, retrieve, and evaluate the effects of macroeconomic indicators on your own decision making. Assignment Steps Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft®Office website. There are also additional tutorials via the web offering support for Office products. Scenario: Consider your last big purchase such as a car, appliances, home repairs, home purchase, computer equipment, college tuition, or another "big-ticket" item, which are often purchased using loans/financing (by borrowing money). Also consider your decision-making process that led you to choose a particular make, model, or brand of the product (or service) you purchased and whether it was the right time to make the purchase given economic conditions at the time of your purchase. While analyzing your decision, keep in mind everything from interest rates to the prices of complementary and substitute goods are driven by human economic behavior. “I will be using my home purchase back in summer of 2009, purchase of 250K at a 3.85 percent interest rate at the time” Develop a minimum 1,050-word analysis of your decision-making process in which you include the following: • • • Retrieve statistics on Real Gross Domestic Product (GDP) and on Real Personal Consumption Expenditures (PCE) by year for the last ten years. You can retrieve those statistics from internet sources including, but not limited to, the Federal Reserve of St. Louis's FRED web site, the U.S. Department of Commerce's Bureau of Economic Analysis (BEA) web site, or another credible source of your choice. Post these statistics in a single worksheet of an Excel® workbook and submit your Excel® file with your report. In your report, discuss the latest 10-year trends in both GDP and PCE. Also discuss how the trends in GDP compare with trends in PCE. You are encouraged to include graphs of these statistics in your report; you could create the graphs in Excel®and copy them into your report. Retrieve statistics on the Effective Federal Funds Rate and on the Consumer Price Index: All Items Less Food and Energy by year for the last 30 years. You can retrieve those statistics from internet sources including, but not limited to, the Federal Reserve of St. Louis's FRED web site, the U.S. Department of Labor's Bureau of Labor Statistics (BLS) web site, or other credible sources of your choice. Post these statistics in a single worksheet of an Excel® workbook and submit your Excel® file with your report. In your report, discuss how the trends in the Effective Federal Funds Rate compare with trends in inflation. If you took out a loan to pay for your "big-ticket" purchase, what was the interest rate on your loan? Were interest rates rising or falling at that time? Were interest rates relatively high or low at that time? You are also encouraged to include graphs of these statistics in your report. Discuss the influence of any Federal government or state government programs, such as tax credits or tax deductions for energy-saving/efficiency purchases, on your decision to make your last big purchase; or if government incentives did not factor into your decision, explain why not. At the time they had tax credits for first time home owners; I was AD so I used a VA Loan I didn’t have to put money down which influenced my decision; it was a foreclosed home; I purchased at a time when everyone was losing their homes and the value of the homes was at a decline • Develop conclusions about the economy's influence on personal and business decisionmaking relative to purchases of big-ticket items, investments, or other major purchases. Cite a minimum of three peer-reviewed sources. Note: The Federal Reserve of St. Louis, the Bureau of Economic Analysis, and the Bureau of Labor Statistics can be cited to fulfill this requirement. Format your paper consistent with APA guidelines. Click the Assignment Files tab to submit your assignment. Be sure you submit your paper as well as the two required Excel® files.
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Running Head: ECONOMICS

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Economics
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ECONOMICS

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Economics

San Diego is a city in California in the United States of America and it is well-known for
its climate, beaches, and parks. However, the economy of the city is greatly affected by a number
of factors some of which include unemployment and inflation. Purchasing a house in this city,
the main factors to focus on would include the source of funds and their effectiveness in the
activity in terms of repayment. Well, most of the activities in San Diego are related to the
military and this is the main economic activity. Also, other contributors to the economy include
manufacturing industries, tourism and international trade (Crotty, 2016). The city also forms the
center of biotechnology research due to the presence of the University of California and UCSD
Medical Center. Through the current economic status of San Diego, taking a loan for purchasing
the house would have some effects as the consequences that would follow during the repayment
would also have the financial impact in my life.
Currently, San Diego has more than 115 firms and these firms impact on the economy by
5.6 billion dollars every year. Also, the city has more than 10 thousand direct jobs which they
offer to the citizens. Through the direct jobs, other indirect jobs are also created amounting to
2500 jobs. This implies that the economy of San Diego is promising and future growth is also
expected. In San Diego, the lowest interest rate for mortgage falls between 3.62% and 3.81%.
this implies that during the tough economic times, the interest rate rises to 3.81% while in normal
circumstances, the rate falls to 3.62...


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