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16 June, 21:28

If house prices in the neighborhood immediately fall by 10 percent (before any mortgage payments are made), what would happen to Joe's and Mike's net worth? (Assume Joe and Mike have no other assets or liabilities.)

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  1. 16 June, 22:01
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    Answer:The net worth of Joe and Mike will reduce.

    Explanation:

    It will reduce because the only asset they both have is the houses in the neighbourhood and since prices have reduced, their net worth will also reduce.
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