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"
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter4: Labor And Financial Markets
Section: Chapter Questions
Problem 31P: Table 4.6 shows the amount of savings and barrowing in a market for loans lo purchase homes,...
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