19. The accompanying diagram shows mortgage interest rates and inflation during 19902005 in the economy of Albernia.
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19. The accompanying diagram shows mortgage interest rates and inflation during 1990–2005 in the economy of Albernia.
When would home mortgages have been especially attractive and why?
Year Inflation rate, interest rate 12%
10 8
6 4
2 2002 2005 1990 1993 1996 1999 Mortgage interest rate Inflation rate
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