The Value of a Piece of Land,held as an Asset,increased

question 59

Multiple Choice

The value of a piece of land,held as an asset,increased in value by 200 percent from 1985 to 2012.Suppose during the same period average prices in the economy rose by 165 percent.The owner of the land,relative to those who do not own land,experienced a:

• A) Higher real wealth as a result of the wealth effect.
• B) Higher real income as a result of the price effect.
• C) Lower real income as a result of the income effect.
• D) Higher real income as a result of the income effect.