When median home prices of currently owned homes rise,the value of real wealth for these owners ________ and their aggregate demand ________.
A) increases; is unaffected
B) increases; increases
C) increases; decreases
D) decreases; decreases
E) is unaffected; is unaffected

Question

Quizplus · Accepted Answer

When the median home prices rise, the value of the homeowners' real wealth increases, leading to an increase in their aggregate demand as they feel wealthier and are likely to spend more.

When Median Home Prices of Currently Owned Homes Rise,the Value