The Relationship Between Interest Rates as a Percent (X) and Housing

question 75

Multiple Choice

The relationship between interest rates as a percent (X) and housing starts (Y) is given by the linear equation Y' = 4094 - 269X. What will be the number of housing starts if the interest rate rose to 16%?

• A) 1875
• B) 1785
• C) -4094
• D) Zero, since you can't have negative housing starts.

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Definitions:

Assets

Resources owned by a business that have economic value and can be used to meet debts, commitments, or facilitate operations.

Rent Expense

The cost incurred by a business for leasing a property or equipment, recognized as an expense in the income statement.

Rent

A regular payment made by a tenant to an owner for the use of property or land.

Year 1

Often refers to the first year in a specific context, such as the initial period of a business, investment, or study.