Interest rates on home loans have increased from 2.9% in 2021 to over 6.5% this year. If

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Interest rates on home loans have increased from 2.9% in 2021 to over 6.5% this year. If this continues for the rest of 2023:

a. There will most likely be a market failure without some form of government intervention.

b. The rationing role of prices will no longer be an issue in the housing market next year.

c. There will most likely be a surplus of homes in many parts of the country, downward pressure on prices and fewer resources being directed into the construction of new homes.

d. There will be a surplus of new homes, rising prices and a decrease in the demand for new homes.

e. B and D only.

Related Book For answer-question

Intermediate Microeconomics

ISBN: 978-0393123968

9th edition

Authors: Hal R. Varian

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Posted Date: Jan 13, 2024 04:49 PM

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Interest rates on home loans have increased from 2.9% in 2021 to over 6.5% this year. If

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Intermediate Microeconomics

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