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 for first-time home buyers increases their purchasing power, leading to a rightward shift in the demand curve for housing. This increased demand, without a corresponding increase in supply, typically results in higher housing prices.

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