During the Most Recent Recession,the Economy Experienced What Many Called

During the most recent recession,the economy experienced what many called a credit crunch.Investment funds dried up,and banks were not lending.Many people who wanted to (and could afford to!)buy homes during the housing market collapse could not obtain a loan to do so.In addition,before the recession,many homeowners had outstanding lines of credit (basically a loan)on the equity in their homes.This meant that they could borrow money against the equity they already had accumulated in their homes for things like home improvements and other projects.During the recession,however,many of these lines of credit were eliminated,leaving people with no available credit.Explain what transmission mechanism this is and how it contributed to the severity and duration of the recession.