Mortgage Interest Rates Are Likely to ________ If the Mortgage

question 48

Multiple Choice

Mortgage interest rates are likely to ________ if the mortgage market becomes privatized,and they are likely to ________ if the Fed reduces its holdings of mortgage-backed securities over time.

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

---

Definitions:

Nonprofit Organization

An organization that operates for the promotion of a certain cause or the well-being of a specific group of people, without profit being the primary aim.

Systems Theorist

A scholar who studies how different parts of a system interact with each other to constitute the whole system’s behaviours and properties.

Deviation-Amplifying Feedback

A process in a system wherein the output of one cycle of operations is increased in the next, leading to growth or change in the system.

Dot-Com Bust

The collapse of numerous internet-based companies in the early 2000s following speculative investment in the technology sector.