Which of these was NOT a factor leading to the financial crisis of 2007-2009?
A) Low interest rates encouraged a housing boom.
B) Policymakers underestimated the level of risk inherent in the mortgage market.
C) The public lacked faith in the ability of the U.S. Treasury to pay government bonds.
D) Investors borrowed heavily to purchase securitized mortgages.
Correct Answer:
Verified
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