Applying neoclassical theory to the housing market,the idea that "housing is a good investment" refers to ________.

Question

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According to neoclassical theory, the value of housing is expected to increase over time, making it a good investment. This is due to an expected increase in the relative price of housing, as demand for housing grows faster than supply. Higher expected household income (A) may increase demand for housing, but does not necessarily make it a good investment. The inability to buy as much housing at a higher price (B) is a consequence of rising housing prices, and does not explain why housing is a good investment. A decrease in the cost of building new houses (D) could potentially increase the supply of housing, but does not necessarily make housing a good investment.

Applying Neoclassical Theory to the Housing Market,the Idea That "Housing