Interest payments on home mortgages and home equity loans are tax deductible. This tax deductibility encourages households to
a. shift other forms of debt to their home mortgage.
b. increase the equity in their house.
c. make larger payments and pay down their mortgage loan more rapidly.
d. decrease the overall amount of household debt in relation to household income.
A
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When the price of popcorn falls, before there is any change in consumption, the
A) marginal utility of popcorn definitely increases. B) marginal utility per dollar from popcorn definitely increases. C) total expenditure on popcorn definitely rises. D) entire total utility of popcorn curve definitely shifts rightward.
Half of all your potential customers would pay $16 for your product but the other half would only pay $10 . You cannot tell them apart. Your marginal costs are $4 . If you set the price at $10, the expected profit is:
a. $3 b. $4 c. $5 d. $6