Mortgage defaults are likely to rise when ________.
A) investment increases
B) consumption falls
C) wage rates rise
D) unemployment falls

Question

Quizplus · Accepted Answer

Mortgage defaults are most likely to rise when consumption falls because this indicates a decrease in overall economic activity and a potential inability for borrowers to keep up with mortgage payments. Increases in investment, wage rates, and decreases in unemployment could lead to more stable financial situations for borrowers and potentially lower default rates.

Mortgage Defaults Are Likely to Rise When ________