Which of the Following Contributed to the Development of the Housing

question 56

Multiple Choice

Which of the following contributed to the development of the housing bubble?

• A) The recency effect caused homes to be undervalued.
• B) Herd instinct caused everyone to believe home prices would continue to fall.
• C) Securitization removed much of the risk from sellers of subprime mortgages.
• D) All of these contributed to the housing bubble.

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Definitions:

Organizational Pay Systems

Structures and strategies employed by organizations to compensate employees, including salaries, benefits, bonuses, and other forms of payment.

Classical Managerial Strategy

A traditional approach to management focusing on hierarchical structures, clear roles, and centralized decision-making.

Human Relations Management

An approach to managing employees that emphasizes the importance of interpersonal relationships, communication, and employee satisfaction in achieving organizational goals.

Laissez-Faire Management

A hands-off management style where employees are given autonomy in their tasks and decision-making, with minimal direct supervision from managers.