Suppose That You Are Interested in Buying a Home,but Are

question 112

Multiple Choice

Suppose that you are interested in buying a home,but are unsure of how much you can afford.What is the best way to determine your prospects for obtaining a mortgage?

• A)Calculate your debt limit ratio.
• B)Figure the 28/36 rule.
• C)Determine what your mortgage payment will be.
• D)Determine what your income taxes will be.
• E)Both B and C are correct answers.

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Definitions:

Externalities

Financial implications or effects that influence bystander third parties and may be either beneficial or harmful.

Incentives

Factors that motivate or encourage individuals to perform actions or make decisions.

Social Benefit

The total benefit to society from a particular action or policy, including both direct benefits to participants and any external benefits to others.

Fire Extinguishers

Devices designed to extinguish or control small fires, often in emergency situations.