If the government enacts legislation which allows lenders to lower lending standards,the government indirectly___________ the demand for which leads to _________ house prices.
A) decreased; higher
B) decreased; lower
C) increased; higher
D) increased; lower

Question

Quizplus · Accepted Answer

Lowering lending standards makes it easier for more people to qualify for mortgages, which increases the demand for houses. As demand increases, house prices typically rise.

If the Government Enacts Legislation Which Allows Lenders to Lower