You Notice That When Interest Rates Increases, New Residential Housing

question 121

Multiple Choice

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

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

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Definitions:

Postpartum Blues

Mild, temporary depression experienced by some mothers shortly after giving birth.

Negative Effects

Unfavorable or harmful outcomes resulting from a specific action, condition, or decision.

Parenthood

The state or responsibilities of being a parent; includes the care, upbringing, and nurturing of a child.

Fertility Rates

The average number of children born to a woman over her lifetime within a population.