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Chapter 23 Pointed Out Lower Interest Rates Can Lead to Higher

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Chapter 23 pointed out lower interest rates can lead to higher home prices, and this can lead to increased household spending since homeowners can spend this additional equity.If you were a lender, is there any danger in making loans to homeowners for this new equity or are these really risk-free loans since they are secured by the equity in the house?

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There is some risk.If lower interest rat...

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