Question: One factor in the 20072009 recession was the decline in housing prices due to the bursting of the housing bubble. The housing industry is closely

One factor in the 2007–2009 recession was the decline in housing prices due to the bursting of the housing bubble. The housing industry is closely linked to many other markets and to the spending and saving decisions of households. Carefully explain some of the ways in which a decline in housing prices may affect the rest of the economy.

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