Now calculate house prices relative to income. What is the interpretation of this series?
Instructions:
(1) In column "G" title this "House Prices to Income" and write a formula in cell "G2" which is equal to house prices divided by income.
(2) Drag this formula down to the end of the column. Do this by double clicking on the bottom right of the cell "G2" when the cursor makes a black plus sign.
(3) Plot the resulting series. Highlight your column of house prices to income, go to the "Insert" tab then "Charts" and choose a line chart.

Question

Now calculate house prices relative to income. What is the interpretation of this series? 
 Instructions: 
 (1) In column "G" title this "House Prices to Income" and write a formula in cell "G2" which is equal to house prices divided by income. 
 (2) Drag this formula down to the end of the column. Do this by double clicking on the bottom right of the cell "G2" when the cursor makes a black plus sign. 
 (3) Plot the resulting series. Highlight your column of house prices to income, go to the "Insert" tab then "Charts" and choose a line chart.

Answer

The series shows that house prices rose relative to income over this period, worsening affordability.

Answer

The series shows that house prices did not change relative to income over this period, meaning affordability did not change much.

Answer

The series shows that house prices fell relative to income over this period, improving affordability.

Crowdly

Now calculate house prices relative to income. What is the interpretation of thi...

Want instant access to all verified answers on learning.monash.edu?