28
QuizMultiple Choice

The Business Cycle — Quiz

Question 28 • Personal Finance and Economics

Which statement best describes why it is difficult to sell a home during a recession?

Answer
A
Housing prices increase.
B
Demand greatly decreases.
C
Mortgages become unavailable.
D
Mortgage rates are high.

Explanation

During a recession, people often have less income or feel uncertain about their jobs, so fewer are willing or able to buy homes. This reduced demand makes it harder for sellers to find buyers. The best choice is “Demand greatly decreases.”

AI-written and checked against the verified answer.