Which of the Following Describes the Cycle of Events That

question 6

Multiple Choice

Which of the following describes the cycle of events that led up to the economic crisis in the United States in 2008?  

• A) Demand for houses decreased, which lowered housing prices, which in turn fuelled a boom in subprime loans. 
• B) Demand for housing decreased, which raised housing prices, which in turn fuelled a boom in subprime loans. 
• C) Demand for housing increased, which lowered housing prices, which in turn fuelled a boom in subprime mortgages. 
• D) Demand for housing increased, which raised housing prices, which in turn fuelled a boom in subprime loans.

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Definitions:

Outcomes Of Behavior

The results or consequences that follow from one's actions or conduct.

Rewards

Benefits, compensations, or other forms of recognition provided to individuals or groups in response to their performance or behavior.

Equity Ratio

A financial metric used to measure a company's level of indebtedness by comparing total equity to total assets.

Equity Sensitives

Individuals who prefer an equitable balance between the input they provide and the outcomes they receive in comparison to others.