What other markets were affected by the decline in the housing market beginning in 2006? Briefly explain why
What will be an ideal response?
Other markets affected included furniture, appliances, and home improvement. One reason that they were affected was that homeowners found it more difficult to borrow against the value of their homes.
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Which of the following would be most likely to cause a reduction in current aggregate demand in the United States?
a. increased fear of a recession b. an increase in the expected rate of inflation c. a sharp increase in the value of stocks owned by Americans d. a rapid increase in the growth of income in Canada, Mexico, and Western Europe
To counteract relative price changes, the government would implement:
A. polices that affect the supply and demand for a specific good. B. fiscal policy. C. monetary policy. D. policies that affect the supply and demand for all goods and services.