08 Jun XECO 212 Week 7 CheckPoint A New House-Economy
he difficulties of the economy affect many of the decisions you make as a consumer. No more so than when you are buying a house. The health of the economy is a factor you should consider when buying a house. Sometimes the economy favors sellers and at other times it favors buyers. This CheckPoint helps you refine your decision to buy a house; it prepares you to explain in your final project how the strength of the economy, government spending, and taxes affect the marginal costs and benefits of your decision.
Consider the role of government bodies that affect the strength of the economy.
Assume for this CheckPoint that purchasing a new home would be a major decision requiring a substantial financial outlay where the wrong decision would have long-term financial consequences.
Submit a 250- to 300-word response addressing the following points:
o Explain how the strength of the economy as a whole could affect the marginal benefits and the marginal costs associated with a decision to purchase a home.
o How would removal of the tax deduction on mortgage interest affect the housing market?
o How would other changes in government spending and taxes affect your decision?
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