How Did the Housing Boom of 1997-2006 Increase Aggregate Demand

question 167

Multiple Choice

How did the housing boom of 1997-2006 increase aggregate demand?

• A) It created more jobs and increased wages in the construction sector.
• B) Interest rates increased to keep pace with housing demand.
• C) More consumers saved, so they could afford the higher housing prices.
• D) Higher interest rates created a boom in the banking sector.

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