If the Government Sets Out to Make Home Buying Easier

question 9

Multiple Choice

If the government sets out to make home buying easier for more people by forcing lenders to accept ____________ down payments and ______________ interest rates,the result will likely be a(n) _______________ in housing prices.

• A) lower; lower; increase
• B) higher; higher; increase
• C) lower; higher; decrease
• D) higher; lower; decrease

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Definitions:

Internal Rate Of Return (IRR)

The discount rate that makes the NPV of an investment zero.

Straight-Line Depreciation

A technique for distributing the expense of a physical asset evenly across its lifespan in identical yearly payments.

Minimum Rate Of Return

The lowest acceptable return on investment, beyond which investment options are not considered.

Mutually Exclusive

Situations or events that cannot occur at the same time, meaning the occurrence of one event prevents the occurrence of the other.