Assuming that investors seek to maximize the return on their investment, the long-run effect of a national tax on real estate will be to:

Question

Quizplus · Accepted Answer

A national tax on real estate will likely reduce the return on investment in real estate, leading investors to seek alternative investments. This increased demand for other assets can drive down returns across all asset classes as the market adjusts to the new tax environment.

Assuming That Investors Seek to Maximize the Return on Their