Which Does NOT Explain Why the 1997-2006 Housing Boom Increased

question 174

Multiple Choice

Which does NOT explain why the 1997-2006 housing boom increased aggregate demand?

• A) The construction sector created new employment and higher wages.
• B) Homeowners felt wealthier as they saw their homes rising in value every year.
• C) Homeowners tended to spend more money and even borrow money,hoping that rising wealth from the home values will let them repay the money in the future.
• D) During the boom,some builders were working 60 or 80 hours a week instead of 40.

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Definitions:

Hypothetical Syllogism

A deductive argument that contains two premises, at least one of which is a conditional statement.

Hypothetical Claim

A statement or assertion based on assumptions or possibilities, not necessarily on facts or reality.

Deductive Argument

A type of logical argument in which the conclusion necessarily follows from the premises if they are true.

Valid

In logic, a term describing an argument where, if the premises are true, the conclusion must also be true.