As of 2005,some analysts were concerned that there was a "bubble" in the U.S.housing market.Suppose there is a reduction in real estate prices.This reduction in real estate prices would have the most direct effect on which of the following types of wealth?
A)financial wealth
B)housing wealth
C)human wealth
D)none of the above

Question

Quizplus · Accepted Answer

A reduction in real estate prices would directly affect housing wealth as it pertains to the value of one's home or any other real estate owned. Financial wealth, such as stocks and bonds, would not be directly affected by changes in real estate prices. Human wealth refers to an individual's future earning potential, and is therefore not directly impacted by changes in real estate prices.

As of 2005,some Analysts Were Concerned That There Was a "Bubble