Applied to the Housing Market, the Implicit Rental Price Concept

question 8

Multiple Choice

Applied to the housing market, the implicit rental price concept states that

• A)it is always better to own than to rent a house.
• B)it is always better to rent than to own a house.
• C)the implicit rental price will equal the interest rates on the mortgage (the loan on the house) plus the amount of depreciation on the house during the year.
• D)taxes will always be lower when renting a house.
• E)None of these.