Part II (20 points) To earn partial credits, please provide details of your calculation whenever applicable Q1 (4 points) Suppose that in a wave of pessimism, housing prices fall by 10 across the entire economy a (1 point) Has the stock of real assets of the economy changed b (1 point) Are individuals less wealthy c (2 points) Can you reconcile your answers to (a) and (b) 1 Part II (20 points) To earn partial credits, please provide details of your calculation whenever applicable Q1 (4 points) Suppose that in a wave of pessimism, housing prices fall by 10 across the entire economy a (1 point) Has the stock of real assets of the economy changed b (1 point) Are individuals less wealthy c (2 points) Can you reconcile your answers to (a) and (b)

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Question: Part II (20 points) [To earn partial credits, please provide details of your calculation whenever applicable.] Q1: (4 points) Suppose that in a wave of

Part II (20 points) [To earn partial credits, please provide details of your calculation whenever applicable.] Q1: (4 points) Suppose that in a wave of pessimism, housing prices fall by 10% across the entire economy. a. (1 point) Has the stock of real assets of the economy changed? b. (1 point) Are individuals less wealthy? c. (2 points) Can you reconcile your answers to (a) and (b)? 1

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