In most parts of the developed world many middle-class people ask themselves over and over again whether they should buy or rent a house. If they live in the United States, Spain, Ireland or the UK, then in a loud chorus they answer Buy. In these countries house prices have almost doubled over the past seven years. Other parts of the developed world have not seen such house price inflation and anyway, is it realistic to assume that prices will always continue to rise? Some people argue that paying rent is like throwing money away and it is better to repay a mortgage and build some equity. But what if house prices fall? A really quite minor adjustment would quickly wipe out the equity of many home owners. If house price inflation is something of the past, then home ownership becomes less attrac- tive. Renting too has some advantages. In particular, people who rent find it far easier to move for their work. Verbal Reasoning
Question: It is reasonable to infer that fewer people will rent if house prices stop going up in value.
Options:
A. true, B. false, C. uncertain
Answer: B