The Housing Crisis Has Some Roots in Inflation Because

question 36

Multiple Choice

The housing crisis has some roots in inflation because:

• A) new houses were new goods and services and the consumer price index (CPI) didn't measure them.
• B) builders confused inflation with an increase in demand and hence overbuilt-a price confusion problem.
• C) there were menu costs associated with higher housing prices.
• D) money illusion occurred when builders thought that real prices were rising.
• E) money illusion occurred when housing buyers thought real wages were rising.

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Definitions:

Possession

The state or fact of owning or having control over something.

Rights

Entitlements or freedoms that are guaranteed by law, ethics, or customs, allowing individuals to perform or not perform certain actions.

Terminal Disease

A progressive disease that has no cure or feasible treatment and is reasonably expected to result in the death of the patient.

Title

A legal term referring to the ownership of property, implying a right to the use and possession of that property.