If Consumers Use Their House as Collateral for Lending and the Value

question 3

Multiple Choice

If consumers use their house as collateral for lending and the value of housing in general falls,then

• A) lending is unchanged and future consumption increases.
• B) borrowing increases further to maintain current consumption.
• C) lending and aggregate consumption decrease.
• D) lenders prefer to become borrowers.
• E) lending and aggregate consumption increase.

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Definitions:

Autism Spectrum Disorder

A spectrum of conditions related to neurodevelopment, marked by difficulties in social interaction, repetitive actions, and communicating effectively.

Risk Factor

An aspect, condition, or behavior that increases the likelihood of suffering harm or adverse effects.

Suicide

The deliberate act of taking one's own life.

Suicide's Unpredictability

The aspect of suicidal behavior that makes it difficult to predict when someone might attempt to take their own life.