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:

Accountant

A professional who manages, audits, and prepares financial records and statements for individuals or organizations.

Attorney

a professional licensed to practice law, offering advice, and representing clients in legal matters and court proceedings.

Bailment

A situation in which the personal property of one person (a bailor) is entrusted to another (a bailee), who is obligated to return the bailed property to the bailor or dispose of it as directed.

Bailee

The individual or party who temporarily receives possession, but not ownership, of personal property from another under a bailment agreement.