In Events Leading to the Collapse of the Housing Bubble

question 117

Multiple Choice

In events leading to the collapse of the housing bubble, inflated home values caused consumers to:

• A) save less and spend more.
• B) spend less and save more.
• C) spend more on homes and less on all other goods.
• D) hold their savings to equity in their homes and stop saving more liquid forms of assets.

---

Definitions:

Punitive Damages

Monetary compensation awarded to a plaintiff, over and above actual damages, intended to punish the defendant for particularly egregious behavior.

Consequential Damages

Additional losses suffered as a direct consequence of a breach of contract, beyond the immediate scope of the contract itself.

Breach of Contract

The failure to perform as stipulated by the terms of a contract, which can result in legal consequences for the party in breach.

Injunction

A judicial order requiring a person to do or cease doing a specific action, preventing irreparable harm or injustice.