The decrease in home construction in the late 2000s resulted in decreased demand at home supply stores like Home Depot,and decreased demand for home appliances like washing machines and refrigerators.This is referred to as a ________ effect of the decrease in home construction.
A) Phillips
B) multiplier
C) bubble
D) recession

Question

Quizplus · Accepted Answer

The decrease in home construction had a multiplier effect on home supply stores and home appliances, as the decreased demand for homes led to decreased demand for products necessary for building and maintaining homes. This resulted in a ripple effect throughout the economy, affecting not only the home construction industry but also related industries.

The Decrease in Home Construction in the Late 2000s Resulted