Explain why the housing market usually prospers, Macroeconomics

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Explain why the housing market usually prospers

Problem

a. Explain why the housing market usually prospers when the (real) mortgage rates are low.

b. In some states, usury laws prohibit (nominal) mortgage rates in excess of a legal maximum. Explain how this could lead to an exception to the conclusion in ( a ).

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Explain why the housing market usually prospers

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