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.

---

Definitions:

Reproductive Organ

An organ involved in the reproductive system that plays a role in the production of gametes and reproductive hormones.

Apomixis

A form of asexual reproduction that occurs via seed formation without fertilization in certain plant species.

Polyploid

An organism or cell having more than two complete sets of chromosomes, usually as a result of an error in cell division.

Asexual Reproduction

A mode of reproduction that does not involve the fusion of gametes, leading to offspring that are genetically identical to the parent.