8. The November 2, 2022, Wall Street Journal reports that interest rates on home loans have increased from 2.9% in 2021 to 7.08% this year. If this continues into 2023: There will most likely be a shortage of new homes and rising home prices.The rationing role of prices will no longer be an issue in the housing market next year.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.There will be a surplus of new homes, rising prices and a decrease in the demand for new homes.B and D only.

Retail industry is one of the key sectors in any economy. The demand and supply of new homes closely…

Answered: The November 2, 2022, Wall Street…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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8. The November 2, 2022, Wall Street Journal reports that interest rates on home loans have increased from 2.9% in 2021 to 7.08% this year. If this continues into 2023:

There will most likely be a shortage of new homes and rising home prices.
The rationing role of prices will no longer be an issue in the housing market next year.
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.
There will be a surplus of new homes, rising prices and a decrease in the demand for new homes.
B and D only.

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