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If Home Prices Rise Far Above the Value of the Homeowner's

Question 10

Multiple Choice

If home prices rise far above the value of the homeowner's mortgage loan,


A) default risk faced by lenders tends to decrease.
B) default risk faced by lenders tends to increase.
C) homeowners will be tempted to default on their mortgage loans.
D) homeowners will have greater difficulty obtaining a home equity line of credit.

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