One Reason the Decline in Asset Prices Just Before and During

question 187

Multiple Choice

One reason the decline in asset prices just before and during the 2008 recession undermined the health of the economy is that they:

• A)raised the value of the dollar making U.S. goods more expensive to foreigners.
• B)raised the trade deficit when foreigners reduced purchases of U.S. assets.
• C)led to a contraction in consumer loans because the value of collateral declined.
• D)undermined consumer and business confidence.

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Definitions:

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A branch of psychology that examines how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others, as well as cultural contexts.

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The state of being harmed or damaged physically or psychologically.

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