Nationally,what two factors caused the bubble in the real estate market?
A) high interest rates and high foreclosures
B) low interest rates and high credit standards
C) low interest rates and loose credit standards
D) tight credit standards and low interest rates

Question

Quizplus · Accepted Answer

The two factors that caused the bubble in the real estate market were low interest rates and loose credit standards. Low interest rates made borrowing money cheaper, which led to increased demand for housing. Loose credit standards allowed many people to apply for and be approved for mortgages that they may not have been able to afford in the long run, which increased demand even further and drove up prices. This created a cycle of increasing demand and increasing prices, which eventually led to the bubble bursting.

Nationally,what Two Factors Caused the Bubble in the Real Estate