In 2019, an article in the Wall Street Journal on the housing market stated, The home-building sector
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In 2019, an article in the Wall Street Journal on the housing market stated, “The home-building sector has struggled with higher interest rates.”
a. Why do high interest rates decrease the quantity of homes that households demand?
b. In which component of aggregate expenditure does the Bureau of Economic Analysis include purchases of new houses?
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a High interest rates decrease the quantity of homes that households demand for several reasons Incr...View the full answer
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