In the Events of the Housing Bubble Collapsing, Once the Housing

question 48

Multiple Choice

In the events of the housing bubble collapsing, once the housing prices stopped increasing refinancing:

• A) was no longer an option, and a wave of foreclosures occurred.
• B) no longer allowed people to borrow cash on the new value of their home, and spending slowed.
• C) became less popular, and people's consumption overall dropped.
• D) became more popular, and people's consumption accelerated overall.