What effect did falling housing prices in the late 2000s have on investment in residential construction?
A) It had no effect; residential construction continued at the same pace it had over the previous decade.
B) The lower prices attracted more investors, resulting in more residential construction.
C) The lower prices decreased investment in residential construction.
D) The lower prices decreased investment in residential construction for about a year, then attracted more investors, resulting in more residential construction.

Question

Quizplus · Accepted Answer

Falling housing prices in the late 2000s led to a decrease in investment in residential construction. Many investors were hesitant to put their money into a market that seemed unstable, and there was less demand for housing as many people struggled to keep up with their mortgage payments or were unable to qualify for loans. This trend continued for several years before eventually stabilizing.

What Effect Did Falling Housing Prices in the Late 2000s