The correct answer is D) lower income taxes for homeowners.
<em>The action that the government of Country DF can take to encourage citizens to purchase homes is lower income taxes for homeowners.
</em>
With lower income taxes, the government helps people with the purchase of homes. Usually, people who buy houses have to save more money for a down payment just to keep up with the prices of property. A major benefit of owning a house is that the owner can deduct mortgage interest on its taxes. The interest on a home equity loan can be deducted too when the owner files its taxes.
