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A growth in demand for real estate assets in the capital market that causes the cap rate to fall, holding demand in the space usage

A growth in demand for real estate assets in the capital market that causes the cap rate to fall, holding demand in the space usage market constant, will produce which of the following short-run and long-run effects?

Select one:

a.

A short-run decrease in rents followed by a subsequent long-run increase

b.

A short-run increase in rents followed by a subsequent drop.

c.

A short-run decrease in property asset prices followed by a subsequent long-run rise

d.

A short-run increase in property asset prices followed by a subsequent long run drop.

e.

None of the answers here

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