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Friday, February 26, 2010

Demand curves are downward sloping?



So, it becomes more expensive (in real terms) to get a mortgage, the "tax break" for first-time homebuyers expires, there is no real improvement in employment and so migration around the country is likely down considerably, and it is somehow surprising that housing sales are down?

Demand curves are downward sloping whether politicians want to believe it or not.

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