When Housing Prices Fell as They Did Beginning in 2006

question 121

Multiple Choice

When housing prices fell as they did beginning in 2006 following the housing market bubble,most banks and other lenders ________ the requirement for borrowers,making it ________ for potential home buyers to obtain mortgages.

• A)tightened; easier
• B)tightened; harder
• C)eased; easier
• D)eased; harder

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Definitions:

Discounting Principle

A concept in psychology which suggests that when there are multiple causes for a behavior, the importance or contribution of any single cause is reduced.

Potential Cause

An element or factor that might bring about a certain effect or outcome, not yet proven as the definitive cause.

Covariation Principle

A concept in social psychology indicating that behavior is attributed to potential causes that co-occur consistently with the observed effect.

Covariation Principle

A principle used to explain how people attribute cause; they note the pattern between the presence or absence of possible causal factors and whether the behavior occurs.