What Happens Over Time to the Real Cost of Purchasing

question 36

Multiple Choice

What happens over time to the real cost of purchasing a home if the mortgage payments are fixed in nominal terms and inflation is in existence?

• A)the real cost is constant.
• B)the real cost is increasing.
• C)the real cost is decreasing.
• D)the price index must be known to answer this question.

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Definitions:

Title VII

The section of the Civil Rights Act of 1964 that prohibits employment discrimination based on race, color, religion, sex, or national origin.

Civil Rights Act

A landmark piece of U.S. legislation passed in 1964 aimed at ending discrimination based on race, color, religion, sex, or national origin.

Disparate Impact

Discrimination occurs when an apparently neutral employment practice disproportionately excludes a protected group from employment opportunities.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantitatively showing how price changes impact consumer demand.