Holding other factors constant, an increase in population due to a large increase in immigrants will ______ the price of housing and ______ the flow of residential housing investment.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Question

Quizplus · Accepted Answer

An increase in population due to a large influx of immigrants will increase the demand for housing, driving up the price of housing. Additionally, the higher demand and increased prices will likely attract more investment into residential housing, increasing the flow of residential housing investment.

Holding Other Factors Constant, an Increase in Population Due to a Large