© 2010 by Cengage Learning Chapter 26 _______________ Real Estate and the Economy

© 2010 by Cengage Learning  Ability of area to produce a commodity or service that will bring in money from outside.  Industries that produce goods & services. ◦ Base ◦ Export ◦ Primary Economic Base

© 2010 by Cengage Learning

 Effect on Property Value  Vulnerability  Employment Multiplier  Housing demand – short & long run ◦ increases & decreases in supply & demand ◦ effect on inflation

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(See page 441)

© 2010 by Cengage Learning  Tax laws  Fiscal policy  Monetary policy  Mortgage markets

© 2010 by Cengage Learning  Cost-Push  Demand-Pull  Monetary  Real-Cost  Tax Benefits  Watch the Feds

© 2010 by Cengage Learning What’s the future outlook?

© 2010 by Cengage Learning Key Terms Base industry Cost-push inflation Demand-pull inflation Economic base Federal Reserve Board Monetize the debt Real Real-cost inflation Service Industry