It seems obviously true, but how does one actually show this? Or what tools does one use? I only know the basics of homotopy theory and homology.
Can I use invariance of domain somehow? If $S^n$ embeds, then so does a neighborhood of it in $R^{n+1}$?
To add to Ted Shifrin's hint, one can actually show a stronger result via the invariance of domain theorem:
This is corollary 2B.4 in Hatcher's Algebraic Topology. To prove it, note that $h(M)$ must be closed since $M$ is compact and $N$ Hausdorff. $h(M)$ is also open by the invariance of domain. Since $N$ is connected, it follows that $h(M) = N$.
Your question now follows since $S^n$ and $\Bbb R^n$ are not homeomorphic.