Holding Other Factors Constant, the Decline in Aggregate Income During

question 47

Multiple Choice

Holding other factors constant, the decline in aggregate income during a recession will ______ the price of housing and ______ the flow of residential housing investment.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

---

Definitions:

Mutually Exclusive

A condition or situation in which the occurrence of one event or state precludes the occurrence of another.

Human Nature

The general psychological characteristics, feelings, and behavioral traits shared by all humans.

Genetically Determined

Traits or conditions that are influenced or dictated by one's genetic makeup.

Hierarchy of Needs

Maslow's theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.