The potential for a stock market and a real estate price collapse to become a real problem
A) is worsened when lots of enterprises and individuals have been careful not to borrow heavily using the inflated values as collateral.
B) is lessened when lots of enterprises and individuals have borrowed heavily using the inflated values as collateral.
C) is worsened when lots of enterprises and individuals have borrowed heavily using the inflated values as collateral.
D) is not really affected when lots of enterprises and individuals have borrowed heavily using the inflated values as collateral.

Question

Quizplus · Accepted Answer

The potential for a market collapse becomes a real problem when many have borrowed heavily against inflated values, as this can lead to widespread defaults and exacerbate financial instability when those values correct.

The Potential for a Stock Market and a Real Estate