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RUDIKE [14]
3 years ago
11

When housing prices fall, as they did beginning in 2006 following the housing market bubble, consumption spending on furniture,

appliances, and home improvements ________ as many households found it ________ to borrow against the value of their homes.
Social Studies
1 answer:
Cerrena [4.2K]3 years ago
3 0

Answer:

declined; harder

Explanation:

Before the Real-Estate bubble exploded,  The banks made it extremely easy for people to borrow money to buy real estates. This make people make a lot of loans to buy properties thinking that the value of the properties will eventually increased and they can pay back their loans.

When the bubble exploded, the value of the properties that they hold massively declined. Following this, furniture, appliances, and home improvements which considered as <em><u>complimentary products </u></em>For other properties also declined.

Now the consumers trapped in  huge loans without having any assets to make back it up. Making it extremely hard for them to borrow another money since their chance of paying them back was extremely low.

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