When Homeowner Harry's sold his residence recently, he found that he had more than $20,000 in equity. This equity did NOT come from
A) the use of an interest-only mortgage payment plan.
B) the principal portion of his PITI monthly mortgage payments.
C) increases in market value of his house due to appreciation and inflation.
D) his down payment.
Answer: A) the use of an interest-only mortgage payment plan.
You might also like to view...
For a seller who is a price taker, marginal revenue is always
A) less than marginal cost. B) more than marginal cost. C) the same as marginal cost. D) less than price. E) the same as price.
Federal Reserve Bank directors
A) have relatively little influence in monetary policy decisions. B) determine bank reserve requirements. C) determine bank capital requirements. D) set the federal funds rate.
The branch of economics that studies the aggregate decisions of all households and all firms is called: a. positive economics
b. normative economics. c. microeconomics. d. macroeconomics.
Identify the ways in which each of the following determinants would have to change if each was causing a decrease in aggregate demand: consumer wealth, consumer expectations, business taxes, national income in countries abroad, exchange rates.
What will be an ideal response?