Hi, I would like to know the answer in the following book. Investments. 11 Edition, from...

Hi, I would like to know the answer in the following book.

Investments. 11 Edition, from chapter 1 - Problem Sets: 6 question:

Q6) Suppose housing prices across the world double.

a. Is society any richer for the change?

b. Are homeowners wealthier?

C. Can you reconcile your answers to (a) and (b)? Is anyone worse off as a result of the change?

I don't have any details other than my textbook. Please let me know what else do you need?

Expert Solution

a. No, society isn't any wealthier for the change as the wealth of the society is determined by real assets. Lodging costs multiplying over the world implies that houses are currently worth all the more monetarily, yet it doesn't imply that there are presently more houses or better houses on the planet. Merely the price of houses getting doubled doesn't create any real assets, therefore society is not any richer for the price change.

b. Yes, the homeowners aare wealthier in a way that the assets owned by them now have a greater value. They would also get a higher rent for the houses they own and higher lease for the houses let out on lease.

c. Yes, the results can be reconciled as the society as a whole do not benefit. No wealth is created but just the wealth of a part of a society increases, i.e., the houseowners. But no wealth or asset is created.

Yes, the part of society that do not own a house are the ones who are worseoff as what they could have bought at $100 yesterday costs $200 today.

jeff jeffy answered 2 years ago

Hi, I would like to know about types of enteral feeding: symptons of intolerance and related...

Hi, I would like to know about types of enteral feeding: symptons of intolerance and related nursing interventions, nursing responsibilities related to NG tube feeding, and what assessment data would indicate desired outcome related to enteral nutrition? Thank you so much.

Hi, I would like to know what codification reference can be used for this case study:...

Hi, I would like to know what codification reference can be used for this case study: Top Notch Tires is a wholesaling and retailing company that deals in automotive tires for foreign cars. During the year-end audit, heated discussion occurs between management and the independent auditors. Management’s accounting policy for valuing inventory of imported tires reads as follows: Inventory is valued at actual cost plus any freight-in. At year-end, the warehousing costs related to the tires are prorated to cost...

Hi, I would like to know how to do this question. Thanks Suppose that basketball (Raptors)...

Hi, I would like to know how to do this question. Thanks Suppose that basketball (Raptors) tickets are $60 each and hockey (Maple Leafs) tickets are $24 each. If you had basketball and hockey tickets such that you would initially trade 2 basketball tickets for each hockey ticket, which tickets would you trade and what would be your equilibrium exchange of basketball for hockey tickets? A) Trade hockey for basketball tickets until you reach 0.4 hockey per basketball tickets B)...

Hi, Please I would like a critical analysis (economic scrap book) about this article below related...

Hi, Please I would like a critical analysis (economic scrap book) about this article below related to microeconomics. Thanks "Subdued Inflation Data Ease Market-Volatility Worries" U.S. economy shows few signs of overheating despite tight labor markets By Daniel Kruger The Wall Street Journal U.S. government-bond prices bounced Tuesday after closely watched data on consumer prices signaled inflation remains muted (faible), easing concerns among investors that rising prices could spark a fresh wave of volatility in financial markets. The yield on...

I would like to know the answer for this case study questions and explanations. Thank you....

I would like to know the answer for this case study questions and explanations. Thank you. 1. You are a home health care nurse scheduled for a home visit to your patient, a retired accounts payable clerk who is 7 days postsurgical with a new colostomy. Your patient lives with her husband who is involved in her care, they compile a list of questions between visits to ask upon your arival at their home. During this visit, the patient has...

I would like to know the detailed solution process and the answer to question number 1...

I would like to know the detailed solution process and the answer to question number 1 a,b. Please explain it. 1. Samsung and Sony have to decide whether they will increase the spending on Research and Development (R&D) Department in order to improve the features of their products which are sold worldwide. If they both increase the spending, the gains of doing so are zero for both. If only one of them increases the R&D budget while the other doesn’t,...

**I KNOW THIS QUESTION HAS ALREADY BEEN ANSWERED; HOWEVER I WOULD LIKE A DIFFERENT ANSWER* With...

******I KNOW THIS QUESTION HAS ALREADY BEEN ANSWERED; HOWEVER I WOULD LIKE A DIFFERENT ANSWER***** With the aid of supply and demand diagrams, explain how each of the following would likely affect the prices and quantities of cigarettes sold in the US. (a) A cure is found for lung cancer. (b) There is a substantial increase in wages in tobacco growing states. (c) A fertilizer that increases the yield per acre of tobacco is discovered. (d) There is a substantial...

Hi, I would like to know which method should we use when doing physics calculations? Acceleration...

Hi, I would like to know which method should we use when doing physics calculations? Acceleration = Speed / Time Let's say we are given 5 measurements of speed and time. S1, S2, S3, S4, S5 and T1,T2,T3,T4,T5. We are given two methods. 1) Find the mean of speed and time, and find their respective standard deviation and standard error. E.g. speed = 0.5 +- 0.2 m/s and 3 +- 0.2 s, substituting into the acceleration formula and doing the...

hi i need answer for 4.1 4E database systems the complete book

Hi, I would like the following python code rewritten in a different way/structure etc. I got...

Hi, I would like the following python code rewritten in a different way/structure etc. I got it from a question I posted but am worried fellow classmates will also be using it so am covering bases. her it is. #threeUniqueSongs.py #Simulation of professor listening to 3 songs out of playlist of 4 songs 10000 times sampling with replacement possible import random import math #Here playlist is the list of 4 songs i.e. "Eastside", "Better Now", "Lucid Dreams", "Harder, Better, Faster,...

Question