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The USFederal Government Offers Homeowners a Tax Deduction for Their Home

Question 46

Multiple Choice

The U.S.federal government offers homeowners a tax deduction for their home loan interest payments.This reduction in taxes may have encouraged too many people to own a home.If the tax deduction caused people who otherwise would have rented to own,the tax deduction serves as a(n) :


A) direct incentive.
B) indirect incentive.
C) neutral incentive.
D) complementary incentive.
E) unintended incentive.

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