One Reason the Decline in Asset Prices Just Before and During

Multiple Choice

One reason the decline in asset prices just before and during the 2008 recession undermined the health of the economy is that they:

A) raised the value of the dollar making U.S. goods more expensive to foreigners.
B) raised the trade deficit when foreigners reduced purchases of U.S. assets.
C) led to a contraction in consumer loans because the value of collateral declined.
D) undermined consumer and business confidence.