When the U.S. housing market recovers after the Great Recession and ho

QUESTION

When the U.S. housing market recovers after the Great Recession and homes are being built at a rapid pace, this will have a direct impact on the price of which commodity?

A) gold
B) coffee beans
C) appliances
D) lumber
E) gasoline

ANSWER

Answer: D
Explanation: D) In an economic expansion that is likely occur during a strong housing construction market, prices for everything will rise due to increased demand, but demand for lumber to build new homes directly impacts the price of the commodity.