Which of the following contributed to the soaring housing prices during 2002-2004?
A) the Fed's high-interest rate policy
B) the tightening of loan standards by commercial lenders
C) the increasing popularity of fixed-rate, long-term loans to lock in low interest rates
D) the Fed's low-interest rate policy

Question

Quizplus · Accepted Answer

The Fed's low-interest rate policy contributed to the soaring housing prices during 2002-2004 as it made it easier for people to obtain loans, resulting in increased demand for housing and driving up prices.

Which of the Following Contributed to the Soaring Housing Prices