Which of the Following Statements About the Housing Market Is

question 22

Multiple Choice

Which of the following statements about the housing market is not true?

• A)The demand curve for housing is negatively sloped.
• B)Many experts believe that one of the factors contributing to the housing bust of 2006 was that interest rates had been too high since the year 2000.
• C)The quantity of housing demanded is negatively related to the rental price of housing.
• D)For many people, the house they live in is the largest capital item they rent or own.
• E)All of these are true.

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Definitions:

Federal Budget Deficit

The shortfall in the federal government's budget when its expenditures surpass its revenues.

National Debt

The total amount of money that a country’s government has borrowed by issuing securities, usually through selling bonds.

Federal Receipts

Revenues collected by the federal government, primarily through taxes, but also including other sources such as customs duties and earnings from the Federal Reserve's operations.

Recession

A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.