Federal government decide to intervene in the housing market

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Reference no: EM131305996

1. How does the creation of a secondary market in mortgages help to promote home ownership? Why might the federal government decide to intervene in the housing market to promote home ownership?

2. Go to the Web site of the Bureau of Economic Analysis (www.bea.gov) and use the data there to calculate the percentage change in GDP for each year from 2000 through 2009. Graph your data. Do the movements in GDP correspond well to the movements in the Case-Shiller price index of houses shown in panel (b) of Figure 1.3 on page 15?

Reference no: EM131305996

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