An article in the Wall Street Journal on the housing market states that "Steady job growth, rising wages and low interest rates have helped prop up housing demand. Source: Steven Russolillo, "Why the Housing Market is Getting Stronger," Wall Street Journal, May 22, 2016. Why do low interest rates increase the demand for housing? OA. The lower the interest rate, the less expensive it is for households to borrow money. OB. The lower the interest rate, the lower the price that sellers are willing to accept for their home. OC. When interest rates are low, the supply of housing increases. O D. Lower interest rates induce consumers to save more money for future home purchases. In the official government National Income and Product Accounts (NIPA), what component of investment includes purchases of new houses? OA. "Actual investment" OB. "Inventories" OC. "Plant and equipment" OD. "Residential"

An article in the Wall Street Journal on the housing market states that "Steady job growth, rising wages and low interest rates have helped prop up housing demand. Source: Steven Russolillo, "Why the Housing Market is Getting Stronger," Wall Street Journal, May 22, 2016. Why do low interest rates increase the demand for housing? OA. The lower the interest rate, the less expensive it is for households to borrow money. OB. The lower the interest rate, the lower the price that sellers are willing to accept for their home. OC. When interest rates are low, the supply of housing increases. O D. Lower interest rates induce consumers to save more money for future home purchases. In the official government National Income and Product Accounts (NIPA), what component of investment includes purchases of new houses? OA. "Actual investment" OB. "Inventories" OC. "Plant and equipment" OD. "Residential"

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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