From Mid-Year 2006 to Year-End 2008, Housing Prices

Multiple Choice

From mid-year 2006 to year-end 2008, housing prices

A) fell by approximately 30 percent, leading to a sharp reduction in aggregate demand.
B) increased by approximately 30 percent leading to a sharp increase in aggregate demand.
C) declined by a smaller about than in previous recessions.
D) were unchanged, but a sharp decline in stock prices reduced aggregate demand.