1. According to Hochguertel and van Soest (2001), why are low income Dutch households incentivized to rent rather than be homeowners? a) The rent market is largely regulated and the government...

1. According to Hochguertel and van Soest (2001), why are low income Dutch households incentivized to rent rather than be homeowners? a) The rent market is largely regulated and the government provides subsidies b) The availability of mortgages and the favorable tax laws c) Buildings for rent are closer to the city center d) They prefer the shorter commitment provided by rent leases

2. Which of these was not a finding of Hochguertel and van Soest? a) Homeowners consistently have different levels of demand for financial wealth than renters b) Housing wealth is not affected by the amount of financial wealth held c) Increase in housing prices decreases the probability of both homeownership and ability to hold financial wealth d) The decision to rent or own a home is completely based on personal preference