Applying neoclassical theory to the housing market, ________ cause a decrease in the desired stock of houses
A) higher expected household incomes
B) higher rates of household formation
C) increases in the expected relative price of housing
D) tighter constraints on mortgage financing
D
You might also like to view...
Most of the U.S. public debt is owed to the nation's citizens and domestic institutions. This is one reason that the public debt
A. crowds out private investment. B. has a procyclical economic effect on the economy. C. does not impose a large burden on future generations. D. can result in the bankruptcy of the Federal government.
During periods when the inflation rate is positive, how does the real interest rate compare to the nominal interest rate?
What will be an ideal response?
To maintain a price above the equilibrium price,
a. demand must increase. b. supply must increase. c. price must be regulated. d. demand must decrease.
The ____ method assumes that the cash flows over the life of the project are reinvested at the ____
a. net present value; computed internal rate of return b. internal rate of return; firm's cost of capital c. net present value; firm's cost of capital d. net present value; risk-free rate of return e. none of the above