The ratio of the rental price of housing to the price of housing is lower than the ratio of the rental price of capital to the price of capital because
A) houses are so much more expensive than capital.
B) most housing built in the United States is far less expensive than the typical capital project.
C) housing depreciates at a much slower rate than physical capital.
D) the rate of inflation in the price of housing is far greater than the rate of inflation in the price of capital.
E) the price of capital is set in an imperfectly competitive market, whereas the price of housing is determined by the workings of a nearly competitive market.
Correct Answer:
Verified
Q23: Just as would be predicted by a
Q24: Let the nominal rate of interest be
Q25: Given a wage for labor and a
Q26: Suppose that an economy with a $4
Q27: In recent years in the United States,
A)
Q29: The income tax system of the United
Q30: Inventories in the United States
A) usually move
Q31: There have been times during which changes
Q32: In specifying the demand for housing in
Q33: Let the expected rate of inflation equal
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents