The Great Recession of 2008 set the stage for:

Question

A.A collapse in commodity prices by decreasing the demand for commodities; a fall in output and employment by decreasing the demand for fix-price goods; and a collapse in stock prices as stock investors turned pessimistic about the prospects for growth.

B. A collapse in commodity prices by increasing the supply of commodities; a fall in output and employment by decreasing the demand for fix-price goods; and a collapse in stock prices as stock investors turned pessimistic about the prospects for inflation.

C. A rise in commodity prices by increasing the demand for commodities; a fall in output and employment by decreasing the supply of fix-price goods; and a collapse in stock prices as stock investors turned pessimistic about the prospects for growth.

 

D. A collapse in commodity prices by decreasing the demand for commodities; a fall in output and employment by increasing the size of government; and a collapse in stock prices as stock investors turned pessimistic about the prospects for inflation.

 

E. A rise in commodity prices by decreasing the demand for commodities; a fall in output and employment by halting technological progress; and a collapse in stock prices as stock investors turned pessimistic about the prospects for growth.

Answer 1

A. The unethical housing practices resulted in a housing bubble that led to a collapse of commodity prices, demand, and a stock market crash after the bubble burst.