Reducing the maximum LTV is likely to ________ demand and thus ________ the housing price increase.
A)decrease; slow down
B)increase; slow down
C)decrease; speed up
D)increase; speed up

Question

Quizplus · Accepted Answer

Reducing the maximum LTV (loan-to-value) means that borrowers will need to put down a higher deposit, which will make it harder for them to afford a property, reducing demand. A decrease in demand will slow down the housing price increase.

Reducing the Maximum LTV Is Likely to ________ Demand and Thus