Describe the intended effects of the first-time home buyer tax credits granted by Congress and many state governments in 2009 and 2010. In addition, describe in detail the unintended effect of this type of legislation
The bills were intended to stimulate the economy, encourage home ownership, help the real estate market, and create jobs in residential construction and related industries. An unintended effect of the tax credits was an increase in the demand for housing. This shifted the demand for housing curve rightward, which raise the price of housing.
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What is a black swan event?
What will be an ideal response?
The Lehman Brothers bankruptcy triggered a financial panic that featured a(n)
A. increase in Treasury interest rates and an increase in most other interest rates. B. increase in Treasury interest rates and a decrease in most other interest rates. C. decrease in Treasury interest rates and an increase in most other interest rates. D. decrease in Treasury interest rates and a decrease in most other interest rates.