One Reason the Decline in Asset Prices Just Before and During

question 126

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 reduce 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:

Prejudice

Preconceived opinion or judgment about someone or something that is not based on reason or actual experience.

Sociocultural Factors

Elements that impact an individual's life and behavior, which emerge from the societal and cultural context they live in.

Social Dominance Orientation

A personality trait characterized by a preference for hierarchy in social situations and endorsement of inequality among groups.

Outgroups

Groups with which an individual does not identify or feel a sense of belonging, often seen as different or outside the in-group.