1
QuizMultiple Select

The Business Cycle

Question 1 • * HSA 26-27 Economics

Why might buying a home during a recession be a good decision for some consumers? Choose three answers.Housing prices are down.It is easier to get a mortgage.Less demand means more options for buyers.Less demand means less competition with other buyers.Fewer houses are on the market.

Answer
H
Housing prices are down.
I
It is easier to get a mortgage.
L
Less demand means more options for buyers.
L
Less demand means less competition with other buyers.
F
Fewer houses are on the market.

Explanation

During a recession, housing prices may fall, so buyers can sometimes purchase a home for less. Lower demand can also mean more homes to choose from and less competition from other buyers. Getting a mortgage is not necessarily easier during a recession, when lenders may tighten their requirements.

AI-written and checked against the verified answer.

Next