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The Federal Reserve has raised interest rates by 5.25 percentage points over in 2023. How might this change in interest rates affect the rental housing
The Federal Reserve has raised interest rates by 5.25 percentage points over in 2023. How might this change in interest rates affect the rental housing market in New York City? Explain your answer and use a demand diagram to illustrate the expected impact. (10p) Hint: The interest rate affects the price of borrowing money to finance housing purchases for buyers. In addition, renting and buying a house are substitutes
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