When housing prices fall, as they do after a housing market bubble, consumption spending on furniture, appliances, and home improvements ________ as many households found it ________ to borrow against the value of their homes.

Question

Quizplus · Accepted Answer

When housing prices fall, it becomes harder for households to borrow against the value of their homes. This means that consumption spending on furniture, appliances, and home improvements declines, as households have less access to credit and may be less willing to make big-ticket purchases.

When Housing Prices Fall, as They Do After a Housing