The strong demand for housing, rising housing prices, and a construction boom from 2000 to 2005 were a result of
a. market forces that were eventually cut short by the stock market crash of 2008.
b. policy changes that had positive initial effects, but negative long-term effects.
c. tightened mortgage lending standards that reduced the risks of obtaining a home mortgage.
d. the rising interest rates of that period, which increased the demand for housing.
B
You might also like to view...
Under oligopoly, collusive practices to fix prices are more likely to take place if
a. market demand is highly elastic. b. market demand is highly inelastic. c. there are a large number of firms in the industry. d. both market demand is highly inelastic and there are a large number of firms in the industry.
Which of the following is not a problem for the price system allocating resources among different time periods?
A. Interest rates are used for a variety of purposes other than influencing investment. B. The market devotes too much to immediate consumption. C. Our market system leads to lesser real incomes for later generations. D. Our market system despoils irreplaceable natural resources.