The Amount of Mortgage a Person Is Eligible for Would

question 96

Multiple Choice

The amount of mortgage a person is eligible for would be increased by

• A)higher interest rates.
• B)a lower down payment.
• C)high debt obligations.
• D)a low family income.
• E)a larger down payment.

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Definitions:

Normal Goods

Goods for which demand increases as the income of the consumer increases and falls when the income of the consumer decreases, all else being equal.

Incomes

Funds earned, frequently in a regular pattern, whether from occupational activities or investments.

Demand

The quantity of a good or service that consumers are willing and able to purchase at different prices during a specific time period.

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied does not change in response to a change in price.