Suppose that in a wave of pessimism, housing prices fall by 10% across the entire economy. a. has the stock of real assets of the economy changed?

asked Apr 26, 2019 213k views

3 votes

Suppose that in a wave of pessimism, housing prices fall by 10% across the entire economy.

a. has the stock of real assets of the economy changed?

9.0k points

Please log in or register to add a comment.

0 votes

The correct answer is No.

No because the real estate in existence has not changed, only the perception of its value has.