What Happens Over Time to the Real Cost of Purchasing

question 53

Multiple Choice

What happens over time to the real cost of purchasing a home if the mortgage payments are fixed in nominal terms and inflation is in existence?

• A) The real cost is constant.
• B) The real cost is increasing.
• C) The real cost is decreasing.
• D) The price index must be known to answer this question.

---

Definitions:

Regaining Weight

The process of putting weight back on after having lost it, often a concern in the context of dieting and health.

Dieting

The practice of regulating or restricting food intake with the purpose of losing, gaining, or maintaining weight.

Eating Disorder

A range of psychological disorders characterized by abnormal or disturbed eating habits, such as anorexia or bulimia.

Pro-Anorexia Web Site

Online platforms that promote or support the eating disorder anorexia nervosa, often by sharing tips, techniques, and problematic content glorifying extreme thinness.