When People Became Less Concerned with the Underlying Value of Their

question 135

Multiple Choice

When people became less concerned with the underlying value of their houses and instead focused on the expectations of the prices of their houses increasing,________ occurred.

• A)stagflation
• B)an automatic destabilizer
• C)a housing bubble
• D)a supply shock

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Definitions:

Erosion

A method where natural powers transport soils, rocks, or substances in solution from their original place to a new location.

Deposition

Deposition is the geological process by which sediments, minerals, and particles are accumulated or laid down in new locations, often by water, wind, or ice.

Sediment Particles

Small fragments of rock, mineral, or organic materials that are transported and deposited by wind, water, or ice.

Erodes Material

The process by which earth, rock, or other materials are worn away by natural forces such as water flow, wind, or ice.