Which of These Is Not an Advantage Associated with an Assumable

question 65

Multiple Choice

Which of these is not an advantage associated with an assumable loan?

• A)The new buyer does not incur the closing costs of a new loan.
• B)The new buyer may be able to get a lower interest rate than the current market rate.
• C)It is easier for the seller to sell the home.
• D)The new buyer does not have to qualify for the loan.

Understand the concept of real and nominal exchange rates.

Calculate the value of domestic investment based on national savings and net capital outflow.

Distinguish between different types of international investments and their impacts on net capital outflows.

Understand the concept of national savings and its calculation in the context of international trade and investment.

---

Definitions:

Population Growth

The increase in the number of individuals in a population, often measured over a specific time period, and influenced by factors such as birth rates, death rates, and migration.

Demographic Transition Model

A theoretical model describing the transition from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, marked by a shift from agrarian societies to industrial and urban centers, leading to significant social, economic, and cultural changes.

Global Carbon Dioxide

The concentration of carbon dioxide in the Earth's atmosphere, which is a critical factor influencing global climate change and warming.