You Notice That When Interest Rates Increases, New Residential Housing

question 141

Multiple Choice

You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that

• A) there must be false causality between interest rates and housing prices.
• B) a scatter diagram between interest rates and housing prices will show a negative relationship.
• C) a cross- section graph between interest rates and housing prices will show a negative relationship.
• D) higher interest rates must cause low housing prices.

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Definitions:

Maslow

Refers to Abraham Maslow, an American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Need

A requirement essential for an organism's survival, growth, and well-being.

Self-actualization

A concept in psychology representing the realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Maslow

Abraham Maslow was an American psychologist who created the hierarchy of needs, a theory in psychology proposing that human actions are motivated by the fulfilment of needs ranging from the most basic physiological to self-actualization.