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The Rental Price of Housing Is Correlated

Question 3

Multiple Choice

The rental price of housing is correlated


A) positively with both the real interest rate and the price of physical housing.
B) positively with the real interest rate and negatively with the price of physical housing.
C) negatively with both the real interest rate and the price of physical housing.
D) negatively with the real interest rate and positively with the price of physical housing.
E) only with the real rate of interest because supply and demand in the competitive building industry keep the price of housing extraordinarily stable.

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