When housing prices fall,as they did beginning in 2006 following the housing market bubble,consumption spending on furniture,appliances,and home improvements ________ as many households found it ________ to borrow against the value of their homes.
A)declined; easier
B)declined; harder
C)increased; easier
D)increased; harder

Question

Quizplus · Accepted Answer

When housing prices fall, it becomes harder for households to borrow against the value of their homes. Therefore, consumption spending on furniture, appliances, and home improvements declines as households have less equity available to use for these types of purchases.

When Housing Prices Fall,as They Did Beginning in 2006 Following