2
QuizMultiple Choice

The Business Cycle

Question 2 • 2102320-Economics HONORS - Edgenuity Teacher

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

Answer
M
Mortgage rates are high.
D
Demand greatly decreases.
M
Mortgages become unavailable.
H
Housing prices increase.

Explanation

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

AI-written and checked against the verified answer.

Previous
Next