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
D)increase; decrease
C)decrease; increase
D)decrease; decrease

Question

Quizplus · Accepted Answer

With an increase in population due to a large increase in immigrants, the demand for housing will increase, leading to an increase in the price of housing. Additionally, an increase in population will also increase the demand for residential housing investment, leading to an increase in the flow of investment.

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