The Required Rate of Return That an Individual Demands on a Real

question 12

Multiple Choice

The required rate of return that an individual demands on a real estate investment is determined in the:

• A) user market
• B) capital market
• C) government
• D) local market

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Definitions:

Disposable Income

The cash reserves left for households to spend and save after paying income taxes.

Disposable Income

Funds households have for saving and spending following the deduction of income taxes.

Disposable Income

Disposable income for households after accounting for income taxes, meant for spending and saving.

Marginal Propensity

The ratio of change in an economic variable, such as consumption or saving, to a change in another variable, like income.