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Please help me in answering and understanding these questions. What impact would an increased in costs of building new houses have on the investment in
Please help me in answering and understanding these questions.
- What impact would an increased in costs of building new houses have on the investment in new housing?
- Say net investment in new housing was zero before the increased construction costs. Given the answer in 1) what happens to gross investment in new housing, net investment in new housing, the stock of housing, and the price of housing?
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