Question

Which statement best describes why it is difficult to sell a home during a recession?
A)Mortgage rates are high.
B)Demand greatly decreases.
C)Mortgages become unavailable.
D)Housing prices increase.

Answer 1

Answer:

B) Demand greatly decreases.

Explanation:

The problem during a recession is that as the economy slows down, people  lose jobs or are less able to earn money. This means they can't buy as many things or spend as much money. When people have less money to spend, they are unlikely to make large purchases, like a new home. With fewer people buying homes, demand for homes decreases, meaning there are not as many buyers for the homes, so more homes are left on the market for a longer time. This will eventually mean that there are a lot of homes on the market and sellers lower the prices of the homes to compete.

Answer 2

The correct answer is letter B

The economic recession is the reduction of a country's Gross Domestic Product (GDP) for two consecutive quarters. Thus, the recession is inextricably linked to a severe economic crisis. In isolation, recession means to go backwards or backwards. When applied to the economy, the term represents a significant economic decline.

The impacts of the economic recession can be severe.

The main ones - and the most felt by the population - are:

Increased unemployment, Falling purchasing power, Decreased productivity, Decreased investments.

The reduction in purchasing power, or in family income, is one of the first symptoms to be felt. With an economic crisis, many employee benefits are reduced within companies. Wages fall and so does the demand for new professionals.