Increases in housing prices
A) decrease consumption in direct proportion to the housing price increases.
B) directly increase consumption, as this increases household wealth.
C) have no independent effect on consumption.
D) decrease consumption only when the overall price level decreases in the economy.

Question

Quizplus · Accepted Answer

The Answer of Increases in housing prices
A) decrease consumption in direct proportion to the housing price increases.
B) directly increase consumption, as this increases household wealth.
C) have no independent effect on consumption.
D) decrease consumption only when the overall price level decreases in the economy.

Increases in Housing Prices