If the probability of losing your job remains ________,a recession would be a good time to purchase a home because the Fed usually ________ interest rates during this time.
A)low; lowers
B)low; raises
C)high; lowers
D)high; raises
E)low; does not change

Question

Quizplus · Accepted Answer

If the probability of losing your job remains low, it means that you are likely to maintain a stable income, which makes it a good time to purchase a home during a recession when the Fed usually lowers interest rates to stimulate the economy. Lower interest rates mean lower mortgage rates, which translates to a lower monthly payment for the homeowner, making it an attractive opportunity for potential buyers.

If the Probability of Losing Your Job Remains ________,A Recession