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Inflation

Inflation. prices. Inflation is a sustained increase in the prices of goods and services (or the cost of living). To measure inflation, we look at changes in the price of a market basket of goods or services households typically purchase with their income. Time.

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CHAPTER 18

CHAPTER 18. The Debt Markets. The Risk of Investing in Mortgages. Default Risk The risk that the borrower will not make the principal and interest payments as scheduled. The longer the term it maturity, the greater the default risk because the more distance future becomes more uncertain.

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Long term mortgages - PowerPoint PPT Presentation

Inflation

CHAPTER 18