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In 2008, Australian government introduced $14000 for first home owners buying orbuilding a new home ($7000 for those buying an established home)....

In 2008, Australian government introduced $14000 for first home owners buying orbuilding a new home ($7000 for those buying an established home). There is someevidence (see the link on Moodle: Web Links Lecture 4) that much of the $14000resulted in increasing the (sellers') price of new homes, partly contributing to housingprice hikes down under. How can you explain this?

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