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It has been suggested that homeowners be allowed to deduct part of their mortgag intrest payments on their income tax forms. If such a policy
It has been suggested that homeowners be allowed to deduct part of their mortgag intrest payments on their income tax forms. If such a policy were to be adopted, what effect would it have on the demand for houses? what would be the effect on price? Explain your anser with the use of a grph. Your grapgh should show the effect on the price of houses, assume that the supply of houses is very inelastic in the short run.
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