XECO 212 Week 7 CheckPoint A Ne .pdf
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Title: XECO 212 Week 7 CheckPoint A New House-Economy
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XECO 212 Week 7 CheckPoint A New HouseEconomy
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The 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
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?