Which of the following was not a direct contributor to the booming housing market in the 2000s?
A)People were expecting housing prices to keep on rising.
B)People could get mortgages with little or no money down.
C)Lending standards became loose.
D)Contractionary policy was passed in 2001.

Question

Quizplus · Accepted Answer

Contractionary policy, which typically involves raising interest rates or reducing the supply of money in the economy, would not contribute to a booming housing market. Instead, it would likely slow down borrowing and spending, including on housing. The booming housing market in the 2000s was fueled by expectations of rising housing prices, easy access to mortgages with little or no down payment, and loose lending standards, not by contractionary economic policies.

Which of the Following Was Not a Direct Contributor to the Booming