An increase in the desired stock of housing would be caused by ________.
A)an increase in household formation
B)higher residential consumption
C)a decrease in expected future income
D)an increase in home prices

Question

Quizplus · Accepted Answer

An increase in household formation means that more people or households are formed, leading to an increase in the demand for housing. This, in turn, would increase the desired stock of housing.

An Increase in the Desired Stock of Housing Would Be