A tax credit given to first-time home buyers would result in a _____________ shift in the ______________ curve for housing, which would lead to the unintended result of a(n)_____________ in the price of housing.

Question

Quizplus · Accepted Answer

A tax credit would incentivize more first-time home buyers to enter the market, which would shift the demand curve for housing to the right. This increase in demand without a corresponding increase in supply would lead to an increase in the price of housing.

A Tax Credit Given to First-Time Home Buyers Would Result