9
QuizMultiple Choice

The Business Cycle — Quiz

Question 9 • Personal Finance and Economics

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

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

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.

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