Financing arrangements lead to increase in market efficiency

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After 1980, a first-time homebuyer could choose between using two ( a primary and a piggyback) mortgages and a 10% downpayment (i.e., an 80-10-10 financing arrangement). Does the use of 80-10-10 financing arrangements lead to increases in market efficiency? Why or Why not? Explain making sure to refer to relevent economic concept in your answer.

Reference no: EM131565981

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