Declines in Spending on Residential Construction Are Often Due to Increases

question 19

Multiple Choice

Declines in spending on residential construction are often due to increases in interest rates.The collapse in residential construction prior to and during the recession of 2007-2009 was due more to ________ than to higher interest rates.

• A)the financial crisis that began in 2007
• B)the rapid inflation of the early 2000s
• C)increases in the price of lumber
• D)rising wages in the construction industry

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Definitions:

Performance

The execution of an action or fulfillment of a contract as specified.

Withdraw Acceptance

The act of revoking acceptance of a contract or offer before it is fully executed, often under specific conditions or due to misrepresentation.

Reasonable Commercial Standards

A set of practices that are considered acceptable and customary in a particular industry or line of business.

Fair Dealing

A principle requiring parties, especially in financial transactions or fiduciary relationships, to act in an honest and open manner without taking unfair advantage.