Economic growth in the country of southville has slowed down in the last few months. following a collapse in housing prices, several homeowners have defaulted on their mortgages. given that this sector accounts for a sizeable portion of the gdp, many commentators believe that this will prompt a 'domino effect' in the economy. on a tv chat show, three industry experts are discussing the crisis and its possible impacts. megan greenboe is of the opinion that housing prices were driven up by speculation prior to the crisis. according to her, this crisis will eventually reduce liquidity in the economy and lead to a credit crunch. bob sacberg, however, does not agree with megan. bob feels that the increase in housing prices can be explained by the steady growth in population and were therefore driven by fundamentals. samantha morris meanwhile is not very convinced that the housing sector is solely responsible for the economic slowdown. she argues that a twelve percent fall in housing prices is unlikely to have a very widespread impact. which of the following, if true, will weaken samantha's argument that the fall in housing prices are unlikely to have a very widespread impact on the economy?
which of the following, if true, will weaken megan's argument that the economy is moving toward a credit crunch? a. stock market volatility in southville has decreased in recent times. b.the government of southville had recently increased the rate of corporate taxes in the economy. c.southville's government recently announced cuts in salaries of public sector workers. d.following the fall in housing prices, many mortgage lenders foreclosed on the loans owed to them. e.buoyed by strong industrial growth, foreign portfolio investors are increasing the allocation toward southville's infrastructure funds