Irresponsible borrowing in the USA was also encouraged by low 'teaser' or 'honeymoon' rates which borrowers could not support when they were reset at higher levels.

Question

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Low 'teaser' or 'honeymoon' rates initially offered borrowers lower interest rates, but when these rates reset to higher levels, many borrowers were unable to afford the increased payments, contributing to financial instability.

Irresponsible Borrowing in the USA Was Also Encouraged by Low