How did the collapse of the housing bubble cause a supply-side driven contraction in output?
A) Because banks were unwilling to lend, many businesses were suddenly unable to access credit for their day-to-day needs.
B) When homeowners lost value in their homes, they stopped saving, which reduced banks' ability to lend.
C) Because consumers lost confidence in the banking industry, they stopped depositing money, so banks could no longer lend.
D) Banks wanted to make loans, but couldn't find any credit-worthy customers to loan to.
Correct Answer:
Verified
Q76: Historically, household debt in the United States
Q77: The housing bubble occurred because:
A) the supply
Q78: How were incentives misaligned during the housing
Q79: Homeowners who are "underwater":
A) possess a mortgage
Q80: Leading to the collapse of the housing
Q82: The Federal Reserve Bank attempted to deal
Q83: Which of the following is a reason
Q84: Which of the following is not a
Q85: Once housing prices stopped increasing in 2007,
Q86: The decrease in consumer spending that occurred
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