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

question 7

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 happens to housing starts as interest rates fall? For what interest rate will the maximum number of housing starts be achieved?

• A) Housing starts remain the same; 0%
• B) Housing starts rise; 0%
• C) Housing starts fall; 10%
• D) Housing starts rise; 15%

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