Question of the Day (October 3)

Community spokesperson: As a result of a recent surge of foreclosures, many homes in our town are vacant and falling into disrepair. Property values have already plummeted and, unless preventative action is taken, will likely continue to plummet as panicked residents, fearing a further decline in the value of their homes, begin to leave town. To prevent this snowball effect, the town should encourage potential buyers to purchase the vacant homes by offering special mortgages with low interest rates for the first five years.

Which of the following, if true, provides the strongest indication that the plan recommended by the community spokesperson is not likely to achieve its goal?

(A) Many of the town's residents have lived in the area for over 20 years and will not want to leave their homes, despite falling property values.
(B) There are several other ways to prevent panicked residents from leaving town besides offering special mortgages.
(C) Crime rates have risen significantly since the recent surge of foreclosures, making the town a less desirable place to live.
(D) Low interest rates will likely attract some buyers who would be unable to make their mortgage payments once the interest rate goes up after the first five years.
(E) In order to subsidize the special mortgages offered by lenders as part of the plan, the town would have to cut funding for many community programs.