Which of the Following Will Help a Buyer Know Ahead

question 9

Multiple Choice

Which of the following will help a buyer know ahead of time the specific mortgage amount that he or she will be eligible for subject to changes in rates and term?

• A)Prequalification
• B)The rent ratio
• C)Leasing
• D)Anchoring
• E)The interest rate

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Definitions:

Government Transfers

Payments by the government to individuals for which no good or service is provided in return.

Deadweight Loss

Deadweight loss is the decrease in total surplus (both consumer and producer surplus) that occurs when a market is not in perfect competition, typically due to inefficiencies like taxes, subsidies, or monopolies.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Poverty Line

A threshold set by governments to define the minimum income level necessary to afford basic necessities, delineating who is considered to be in poverty.