When the Housing Bubble Popped, the Effect of the Negative

question 175

Multiple Choice

When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:

• A) output, causing it to definitely decrease.
• B) output, causing it to definitely increase.
• C) prices, causing them to definitely rise.
• D) prices, causing them to definitely fall.

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Definitions:

Federal Estate

The estate of a deceased person that is subject to Federal estate taxes, which are taxes imposed on the transfer of the decedent's assets.

Abatement

The reduction, decrease, or relief from severity, intensity, or intensity of something, often used in the context of tax, rent, or environmental hazards.

Ademption

The situation in wills and estates where a specific bequest cannot be distributed because the item no longer exists in the decedent's estate.

Legacies

Gifts or inheritances left to someone in a will.