Holding Other Factors Constant, a Decline in the Real Interest

question 61

Multiple Choice

Holding other factors constant, a decline in the real interest rate will ______ the price of housing and ______ the flow of residential housing investment.

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

---

Definitions:

Partnership Obligation

Duties and responsibilities that partners within a partnership have towards the partnership and each other.

Liable

Legally responsible for an act or a consequence.

Dissociation

The process or action by which a member of an entity such as a partnership or association formally ends their association with, or participation in, that entity.

Retiring Partner

A partner who leaves a partnership, ending their association with the business.