Question: 1 2 Assuming no other changes, if inflation increases, which of the following is NOT true? a . Property tax deductions will increase. b .

12 Assuming no other changes, if inflation increases, which of the following is NOT true? a. Property tax deductions will increase. b. The difference between owning and renting will decrease. c. The value of the home at selling increases across all holding periods. d. The property value will increase. e. The IRRs will increase for all holding periods. f. The interest portion of the payments will increase over the life of the mortgage. g. Higher inflation will increase the operating costs of owning, such as maintenance and insurance. h. The cost of renting increases at the pace of inflation. i. The IRR will increase over the 5 year holding period. j. All of these are true.

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