The time-series plot in the next column shows the number of new homes built in the Midwest from 2000 to 2009.
(a) Describe how this graph is misleading.
(b) What is the graph trying to convey?
(c) In January 2006, the National Association of Realtors reported, “A lot of demand has been met over the last five years, and a modest rise in mortgage interest rates is causing some market cooling. Along with regulatory tightening on nontraditional mortgages, there will be fewer investors in the market this year.”
Does the graph support this view? Explain why or why not. Do you think the National Association of Realtors was correct in their assessment of the new home market?

  • CreatedApril 27, 2015
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