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telo118 [61]
3 years ago
14

What effects do you think a drop in housing prices would have on the overall economy

Social Studies
1 answer:
Irina18 [472]3 years ago
6 0
"<span>When housing prices fall, consumers are more likely to </span>default<span> on their home loans, causing banks to lose money. Also, home equity dries up, meaning that consumers have fewer funds available for spending, saving, investing or paying down their debts. Sometimes, banks are even forced to shut down."</span><span>

Read more: How does a decline in housing prices affect the banking sector? | Investopedia http://www.investopedia.com/ask/answers/032315/how-does-decline-housing-prices-affect-banking-sector... 
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