A Study Prepared for the National Association of Realtors Estimates

question 123

Multiple Choice

A study prepared for the National Association of Realtors estimates that the number of housing starts per year over the next 5 yr will be million units, where r (percent) is the mortgage rate. Use differentials to estimate the decrease in the number of housing starts when the mortgage rate is increased from 17% to 17.8%. Round to the nearest unit.

• A) 20,119 housing starts
• B) 20,133 housing starts
• C) 20,856 housing starts
• D) 19,172 housing starts