Congress considers a bill that would eliminate the mortgage interest deduction for individuals. For the housing industry, this is an example of
A) tax risk.
B) interest rate risk.
C) business risk.
D) event risk.

Question

Quizplus · Accepted Answer

The mortgage interest deduction directly impacts the cost of owning a home by reducing the tax liability for homeowners. Eliminating this deduction would likely decrease the demand for home purchases, affecting the housing industry's profitability. This scenario is an example of tax risk, as it involves changes in tax policy that could impact the industry's financial performance.

Congress Considers a Bill That Would Eliminate the Mortgage Interest