The Great Recession,which began in 2008,was precipitated primarily because the federal government was too lax in regulating

Question

Quizplus · Accepted Answer

The Great Recession was caused primarily by the collapse of the housing market, which was fueled by the issuance of subprime mortgages to consumers who could not afford them. The federal government, particularly through agencies like Fannie Mae and Freddie Mac, was too lax in regulating the banks and other institutions that were issuing these loans. As a result, when the housing market collapsed, it caused a domino effect that led to the wider economic crisis known as the Great Recession.

The Great Recession,which Began in 2008,was Precipitated Primarily Because the Federal