The Economic Benefits of Owning a Home Are Greater When

question 127

Multiple Choice

The economic benefits of owning a home are greater when home prices are

• A)falling and interest rates are high.
• B)rising and interest rates are low.
• C)rising and interest rates are high.
• D)falling and interest rates are low.

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Definitions:

Depreciation

The gradual decrease in the economic value of the capital stock of a firm, nation, or other entity, either through physical wear and tear or through obsolescence.

Capacity Utilization Rate

A measure of how well an entity is using its potential output capacity, often expressed as a percentage.

Recessions

Periods of economic decline marked by falling GDP and other economic indicators, often resulting in higher unemployment rates.

Office Machines

Equipment used in an office environment for administrative or clerical tasks, such as printers, copiers, and computers.