Question

True or false "joe and tess mcgreen are purchasing their first home in durham, north carolina. they are seeking pre-qualification on a home loan. the unemployment rate for north carolina is 10.2% and gdp is declining. chances are pretty good that the fed will raise interest rates in order to loosen the supply of money, resulting in a more expensive loan for joe and tess."

Answer 1

False. Since the GDP is declining, the fed will try to reduce the unemployment rate, which will uplift the GDP and also increase the purchasing power of the customers. As a result, the home loans will become cheaper and Joe and Tess will get the home loans at a cheaper rate.