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Difficulty:
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Question Stats:
74% (01:57) correct
26%
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wrong
based on 91
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The real estate sector in many parts of the Drastia is witness to a significant slump, which is attributed by most realtors to high home loan mortgage rates. They believe that in order to ease the situation, the Federal Reserve should step in and improve market liquidity so as to enable people to buy houses at affordable prices.
Which of the following, if true, would serve the most to weaken the argument offered by realtors?
A. Home loans have shown a significant upswing after the mortgage rates were softened by many banks in some states.
B. Bankers believe that mortgage rate is a major factor affecting a customer's willingness to buy a home.
C. Prospective home buyers buy homes to satisfy their desire for a world of their own.
D. Studies over the years consistently show that the demand for home loans is not price elastic.
E. Enough housing is available for sale especially after the banks resumed the sale after default on the mortgage taken by homeowners.
(Source=TCYOnline)
Which of the following, if true, would serve the most to weaken the argument offered by realtors?
A. Home loans have shown a significant upswing after the mortgage rates were softened by many banks in some states.
B. Bankers believe that mortgage rate is a major factor affecting a customer's willingness to buy a home.
C. Prospective home buyers buy homes to satisfy their desire for a world of their own.
D. Studies over the years consistently show that the demand for home loans is not price elastic.
E. Enough housing is available for sale especially after the banks resumed the sale after default on the mortgage taken by homeowners.
(Source=TCYOnline)
06 Feb 2026, 23:59
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The real estate sector in many parts of the Drastia is witness to a significant slump, which is attributed by most realtors to high home loan mortgage rates. They believe that in order to ease the situation, the Federal Reserve should step in and improve market liquidity so as to enable people to buy houses at affordable prices.
Which of the following, if true, would serve the most to weaken the argument offered by realtors?
The realtors’ argument is: sales are down mainly because mortgage rates are high, so the Federal Reserve should improve liquidity so borrowing becomes cheaper and more people buy homes. The key core assumption is that lowering borrowing costs would meaningfully increase demand for home loans.
A. Home loans have shown a significant upswing after the mortgage rates were softened by many banks in some states.
This supports the realtors. It suggests lower rates can increase borrowing, so it does not weaken.
B. Bankers believe that mortgage rate is a major factor affecting a customer's willingness to buy a home.
This also supports the realtors. It reinforces that rates matter.
C. Prospective home buyers buy homes to satisfy their desire for a world of their own.
This is basically irrelevant. A desire to own a home does not tell us whether high rates are causing the slump or whether liquidity would fix it.
D. Studies over the years consistently show that the demand for home loans is not price elastic.
This directly weakens the realtors’ plan. If demand for home loans does not respond much to price, then lowering rates via more liquidity would not significantly increase borrowing or home buying, so the proposed fix would not likely ease the slump.
E. Enough housing is available for sale especially after the banks resumed the sale after default on the mortgage taken by homeowners.
This suggests supply is high, but it does not directly show that rates are not the main cause or that lowering rates would not help. It is weaker than (D).
Answer: (D)
Which of the following, if true, would serve the most to weaken the argument offered by realtors?
The realtors’ argument is: sales are down mainly because mortgage rates are high, so the Federal Reserve should improve liquidity so borrowing becomes cheaper and more people buy homes. The key core assumption is that lowering borrowing costs would meaningfully increase demand for home loans.
A. Home loans have shown a significant upswing after the mortgage rates were softened by many banks in some states.
This supports the realtors. It suggests lower rates can increase borrowing, so it does not weaken.
B. Bankers believe that mortgage rate is a major factor affecting a customer's willingness to buy a home.
This also supports the realtors. It reinforces that rates matter.
C. Prospective home buyers buy homes to satisfy their desire for a world of their own.
This is basically irrelevant. A desire to own a home does not tell us whether high rates are causing the slump or whether liquidity would fix it.
D. Studies over the years consistently show that the demand for home loans is not price elastic.
This directly weakens the realtors’ plan. If demand for home loans does not respond much to price, then lowering rates via more liquidity would not significantly increase borrowing or home buying, so the proposed fix would not likely ease the slump.
E. Enough housing is available for sale especially after the banks resumed the sale after default on the mortgage taken by homeowners.
This suggests supply is high, but it does not directly show that rates are not the main cause or that lowering rates would not help. It is weaker than (D).
Answer: (D)
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