As the Housing Bubble Collapsed, and the Value of Homes

question 69

Multiple Choice

As the housing bubble collapsed, and the value of homes decreased, consumers’ loss of wealth led to:

• A) decreased consumption, which increased prices, which increased the costs of production, leading to more job loss.
• B) decreased consumption, which further depressed prices, which reduced output further, leading to more job loss.
• C) increased consumption, which increased prices, which increased the costs of production, leading to more job loss.
• D) decreased consumption, which further depressed prices, which decreased the amount people had to spend, and increased savings.

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Definitions:

Geologic Map

A geologic map is a specialized map that illustrates the types and ages of rock formations and structures at the Earth's surface, including fault lines and stratification.

Gentle

Characterized by a soft or mild nature; not steep or harsh, often used to describe slopes or terrain.

Cliffs

Steep rock faces, often along coastlines or riverbanks, formed by erosion and tectonic activities.

Elevation

The altitude of a place above sea level or ground level.