Declines in Spending on Residential Construction Are Often Due to Increases

question 19

Multiple Choice

Declines in spending on residential construction are often due to increases in interest rates.The collapse in residential construction prior to and during the recession of 2007-2009 was due more to ________ than to higher interest rates.

• A)the financial crisis that began in 2007
• B)the rapid inflation of the early 2000s
• C)increases in the price of lumber
• D)rising wages in the construction industry

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Definitions:

Empirical

Relies on, deals with, or can be proven through watching or undergoing something firsthand rather than through theoretical or strictly logical means.

Comparative

Involving the assessment or analysis of similarities and differences between two or more entities.

Pragmatic

A practical approach to problems and affairs, focusing on the results and consequences of actions.