A New House - the demand for buying homes, because that is...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
A New House The strength of our economy as a whole affect the marginal benefits and the marginal costs associated with a decision to purchase a home, because consumers use marginal benefits and cost to figure out if they should even purchase a home at that time. When economic growth is higher, a potential buyer will mostly buy a home simply because the marginal benefits are better the than the marginal cost. Take for example seasonal sales individuals spend more because we as people love to bargain shop. Now when economic growth is struggling, a potential buyer may be reluctant to spend their hard earned dollars because then money is scarce. During this time, marginal cost overloads the marginal benefit, so that potential buyer would mostly wait until the economy picks up. The removal of the tax deduction on mortgage interest will lessen
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the demand for buying homes, because that is something that people look for when purchasing a new home and some first time buyers really need that deduction to get started. There are so many factors that affect the decisions to buy a home, but the government should really cut back on over spending and continue to cut taxes for those who need the tax break, like home buyers. The government should only increase their spending on things that will benefit our economy. The type of businesses that will attract investor in order to stimulate our countrys economic growth, and then the demand for house will increase because people will feel better able spending their money....
View Full Document

Ask a homework question - tutors are online