Suppose homebuyers believe that prices will fall over the next six months to a year. This would tend to
A) increase their demand for homes today.
B) decrease their demand for homes six months from today.
C) decrease their demand for homes today.
D) have no effect on their demand today or six months from today.
C
You might also like to view...
Financial securities are exchanged by dealers linked by computers in a
A) stock exchange. B) public exchange. C) financial exchange. D) over the counter market.
Suppose the rest of the world experiences a recession that causes a reduction in foreign income (Y*). From the domestic economy's perspective, this reduction in foreign income will cause which of the following as the domestic economy adjusts to the drop in Y*?
A) a reduction in income and a reduction in imports B) a reduction in imports and an increase in net exports C) the NX line to shift up D) an ambiguous effect on net exports