Higher Home Values Can Increase Output in the Economy If

question 25

Multiple Choice

Higher home values can increase output in the economy if:

• A)People take some of the equity out of their homes and spend it on a vacation
• B)People sell their existing home and build a new one
• C)People finance their child's college education by securing a second mortgage on their now higher-valued home
• D)All of the answers given are correct

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Definitions:

Federal Acts

Laws enacted by the federal government of a country, applying nationwide and superseding local or state laws in areas of federal jurisdiction.

Consumer Protection

Laws and strategies designed to ensure the rights of consumers, as well as fair trade, competition, and accurate information in the marketplace.

Negotiable Instruments

Financial documents that guarantee the payment of a specified amount of money, either on demand or at a set time.

Transferring Funds

The act of moving money from one account to another, across individuals, businesses, or banking institutions.