Find how does policy of allowing for mortgage interest tax

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In the U.S., mortgage interest payments are tax-deductible. That is, a mortgage borrower can pay less income tax if she also pays a mortgage.

Problem 1: Consider the mortgage lending market. How does the policy of allowing for mortgage interest tax deduction impact the demand and supply curves of mortgage lending? What about the impact on the overall quantity of mortgage lending and mortgage interest rate?

Reference no: EM132996192

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