a. No, the increase in prices does not add to the productive capacity of the economy.
b. Yes, their assets cost more than they did before.
c. The future homeowners would have trouble acquiring their homes and paying off mortgage liabilities. The housing bubble could potentially cause a crisis later down the road.
References
Academic.Tips. (2021) 'Suppose housing prices across the world double. a. Is society any richer for the change? b. Are homeowners wealthier? c. Can you reconcile your answers to (a) and (b)? Is anyone worse off as a result of the change'. 11 June.
Reference
Academic.Tips. (2021, June 11). Suppose housing prices across the world double. a. Is society any richer for the change? b. Are homeowners wealthier? c. Can you reconcile your answers to (a) and (b)? Is anyone worse off as a result of the change? https://academic.tips/question/suppose-housing-prices-across-the-world-double-a-is-society-any-richer-for-the-change-b-are-homeowners-wealthier-c-can-you-reconcile-your-answers-to-a-and-b-is-anyone-worse-off-as-a-result/
References
Academic.Tips. 2021. "Suppose housing prices across the world double. a. Is society any richer for the change? b. Are homeowners wealthier? c. Can you reconcile your answers to (a) and (b)? Is anyone worse off as a result of the change?" June 11, 2021. https://academic.tips/question/suppose-housing-prices-across-the-world-double-a-is-society-any-richer-for-the-change-b-are-homeowners-wealthier-c-can-you-reconcile-your-answers-to-a-and-b-is-anyone-worse-off-as-a-result/.
1. Academic.Tips. "Suppose housing prices across the world double. a. Is society any richer for the change? b. Are homeowners wealthier? c. Can you reconcile your answers to (a) and (b)? Is anyone worse off as a result of the change?" June 11, 2021. https://academic.tips/question/suppose-housing-prices-across-the-world-double-a-is-society-any-richer-for-the-change-b-are-homeowners-wealthier-c-can-you-reconcile-your-answers-to-a-and-b-is-anyone-worse-off-as-a-result/.
Bibliography
Academic.Tips. "Suppose housing prices across the world double. a. Is society any richer for the change? b. Are homeowners wealthier? c. Can you reconcile your answers to (a) and (b)? Is anyone worse off as a result of the change?" June 11, 2021. https://academic.tips/question/suppose-housing-prices-across-the-world-double-a-is-society-any-richer-for-the-change-b-are-homeowners-wealthier-c-can-you-reconcile-your-answers-to-a-and-b-is-anyone-worse-off-as-a-result/.
Work Cited
"Suppose housing prices across the world double. a. Is society any richer for the change? b. Are homeowners wealthier? c. Can you reconcile your answers to (a) and (b)? Is anyone worse off as a result of the change?" Academic.Tips, 11 June 2021, academic.tips/question/suppose-housing-prices-across-the-world-double-a-is-society-any-richer-for-the-change-b-are-homeowners-wealthier-c-can-you-reconcile-your-answers-to-a-and-b-is-anyone-worse-off-as-a-result/.