The strong demand for housing, rising housing prices, and a construction boom from 2000 to 2005 were a result of
A) market forces that were eventually cut short by the stock market crash of 2008.
B) policy changes that had positive initial effects, but negative long-term effects.
C) tightened mortgage lending standards that reduced the risks of obtaining a home mortgage.
D) the rising interest rates of that period, which increased the demand for housing.

Question

Quizplus · Accepted Answer

The housing boom was partly due to policy changes, such as relaxed lending standards and government incentives, which initially boosted the market but led to negative consequences like the housing bubble burst.

The Strong Demand for Housing, Rising Housing Prices, and a Construction