The prices of single-family houses:

Question

Quizplus · Accepted Answer

The prices of single-family houses tend to rise over time, acting as a hedge against inflation. This is because the value of a property is often tied to the cost of construction materials and labor, which tend to increase with inflation. As a result, homeowners can benefit from a rise in the value of their homes as they can sell for a profit or use it as collateral for loans.

B, C, D, and E are incorrect:
B is incorrect because the rise in prices of single-family houses may differ from the Consumer Price Index, which represents the average prices of goods and services.
C is incorrect because the value of a property can decrease due to factors such as economic conditions, location, and competition.
D is incorrect because the prices of single-family houses can be affected by the business cycle, such as during economic recessions where job losses and economic uncertainty can lead to a decline in demand for housing.
E is incorrect because property values can fluctuate over time depending on various factors.

The Prices of Single-Family Houses