Which Statement About the Subsidy for Home Ownership Is TRUE

Multiple Choice

Which statement about the subsidy for home ownership is TRUE?

A) The rationale behind the subsidy is that homeowners donate more to charitable causes.
B) Empirical research suggests that the tax subsidy does not change homeownership rates but rather induces homeowners to spend more on houses.
C) The rationale behind the subsidy is that there is a positive externality associated with people buying larger,more expensive houses.
D) Empirical research suggests that the home mortgage interest deduction is justified by large positive externalities associated with homeownership.