Both overspending on credit by households and low interest rates set in motion the events that led to the 2007-2009 recession.

Question

Quizplus · Accepted Answer

Overspending on credit by households led to the housing bubble, which eventually burst in 2007. Low interest rates encouraged people to take out more loans, including subprime mortgages, which contributed to the housing bubble and ultimately the financial crisis.

Both Overspending on Credit by Households and Low Interest Rates