The mania in the 1970s that led to a sharp increase in low-interest loans, followed by a peak in interest rates led to which of the following?
A) An economic boom
B) The debt crisis
C) New banking regulations
D) A surge in communism
E) A boost for the newly-emerging technology industry

Question

Quizplus · Accepted Answer

The mania for low-interest loans in the 1970s, followed by a peak in interest rates, directly contributed to the debt crisis. This period saw many countries, especially in the developing world, borrowing heavily due to initially low interest rates, only to find themselves unable to repay or service their debts when interest rates rose sharply.

The Mania in the 1970s That Led to a Sharp