As the Housing Bubble Collapsed, the Cycle of Defaults and Falling

question 38

Multiple Choice

As the housing bubble collapsed, the cycle of defaults and falling prices began that would ultimately cause home values to:

• A) fall by more than 90 percent in the hardest-hit areas.
• B) stop rising, practically halting the mortgage loan industry for a number of years.
• C) fall by more than 50 percent in the hardest-hit areas.
• D) fall by about 25 percent in the hardest-hit areas.

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Definitions:

Evolutionary Psychology

An exploration of psychological frameworks within the social and natural sciences, guided by the principles of modern evolutionary theory.

Cognitive Neuroscience

An academic field that studies the biological processes and aspects that underlie cognition, with a focus on the neural connections in the brain which are involved in mental processes.

Behavior Genetics

The study of the relative power and limits of genetic and environmental influences on behavior.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning, emphasizing the importance of observable actions over internal processes.