As the housing bubble collapsed, and the value of homes decreased, consumers' loss of wealth led to:
A. decreased consumption, which further depressed prices, which reduced output further, leading to more job loss.
B. increased consumption, which increased prices, which increased the costs of production, leading to more job loss.
C. decreased consumption, which increased prices, which increased the costs of production, leading to more job loss.
D. decreased consumption, which further depressed prices, which decreased the amount people had to spend, and increased savings.
Answer: A
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