Could any combination of home price, mortgage, or further borrowing on a home result in a simple

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Could any combination of home price, mortgage, or further borrowing on a home result in a simple leverage ratio of 1/2? If yes, provide an example. If no, briefly explain why.

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Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

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Question Posted: Dec 11, 2012 12:18 AM

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Could any combination of home price, mortgage, or further borrowing on a home result in a simple

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No The minimum possible leverage is 1 which is the case in which you fi...View the full answer

Macroeconomics Principles and Applications

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