Think of the interest rate as the "price" of a home loan. Other things constant, if people expect interest rates to rise significantly over the next couple months, their willingness to purchase a home financed by a mortgage today will tend to
A) rise.
B) fall.
C) remain unchanged.
D) do any of the above because home purchase decisions are independent of interest rates on mortgages.
A
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Refer to above figure. Why would workers not shift from agriculture to manufacturing in the initial situation where wages are higher in the latter?
What will be an ideal response?
A device used to measure the movement of stock prices is called a(n)
A) exchange B) index. C) network. D) bureaucracy.
Bountiful Tractors has a share price of $60, retained earnings of $2 per share, and a dividend yield of 2 percent. What is Bountiful Tractor’s price-earnings ratio?
a. 23.1
b. 18.75
c. 15
d. 30
A one-time increase in the price of oil followed by a one-time increase in aggregate demand produce
What will be an ideal response?