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If Real Estate Prices Are Expected to Drop,all Else Equal,the

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If real estate prices are expected to drop,all else equal,the demand for bonds ________ and the interest rate ________.


Definitions:

Default

A failure to fulfill an obligation, especially failure to meet a financial obligation like a loan repayment.

Mortgage Company

A financial institution that provides loans specifically for buying real estate properties.

Probability

A measure quantifying the likelihood that an event will occur, ranging between 0 and 1.

Probability Distribution

A statistical function describing the likelihood of different outcomes in a random experiment.

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