As the Housing Bubble Collapsed, as More Foreclosures Occurred, and the Supply

question 22

Multiple Choice

As the housing bubble collapsed, as more foreclosures occurred, and the supply of homes for sale:

• A) increased, it further decreased home values, which led to more foreclosures.
• B) increased, the price of homes fell, and so the demand for homes increased.
• C) decreased, as homeowners no longer wanted to sell their homes when prices were low.
• D) decreased, as homeowners refused to sell when they owed more than the market value.

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Definitions:

Social Security

A governmental program designed to provide financial assistance to elderly, disabled, and survivors through retirement benefits, disability insurance, and other means.

Americans Working

The portion of the U.S. population engaged in employment, reflecting the labor force's health and economic activity levels.

Depression

An extended period of significant economic downturn, characterized by a substantial decrease in economic activity, high unemployment, and deflation.

New Deal

A collection of initiatives, including public projects, economic reforms, and regulations, implemented in the United States by President Franklin D. Roosevelt in the 1930s, aimed at aiding the recovery from the Great Depression.