Which of the following contributed to the dramatic rise in housing prices between 2002 and mid-year 2006?
A)the low interest rate policy of the Federal Reserve
B)the Fed's restrictive monetary policy,which led to high interest rates
C)the tightening of loan standards by commercial lenders
D)the substantial excess reserves of commercial banks

Question

Quizplus · Accepted Answer

The low interest rate policy of the Federal Reserve made it easier for people to obtain mortgages, resulting in an increase in demand for housing. This increase in demand, combined with a limited supply of available homes, led to a rise in housing prices.

Which of the Following Contributed to the Dramatic Rise in Housing