When Interest Payments on Home Mortgages and Home Equity Loans

question 357

Multiple Choice

When interest payments on home mortgages and home equity loans are tax deductible,

• A) households will keep other forms of debt separate from their home mortgage.
• B) households will shift other forms of debt to their home mortgage.
• C) households are likely to increase the amount of equity in their home.
• D) the overall amount of household debt is likely to decrease in relation to household income.

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