If mortgage rates rise from 5% to 10% but the expected rate of increase in housing prices

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If mortgage rates rise from 5% to 10% but the expected rate of increase in housing prices rises from 2% to 9%, are people more or less likely to but houses?

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:14 AM

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If mortgage rates rise from 5% to 10% but the expected rate of increase in housing prices

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