Which of the Following Would Increase the Speed of Equity

question 32

Multiple Choice

Which of the following would increase the speed of equity growth for a homebuyer?

• A)making a down payment of 10 percent instead of 20 percent
• B)obtaining a mortgage interest rate of 9 percent instead of 8 percent
• C)obtaining a 20-year mortgage instead of a 25-year mortgage
• D)making larger deposits to the escrow account
• E)making smaller deposit to the escrow account

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Definitions:

Marginal Revenue

The additional income obtained from selling one more unit of a good or service, critical in determining the optimal level of production for a firm.

Profits Maximize

The process or strategy by which a firm seeks to achieve the highest possible return or benefit from its operations and resources.

Monopolist

A single seller in a market who has significant control over the prices and supply of a product or service.

Profit Maximizing

The process or strategy of adjusting production and sales to achieve the highest possible profit.