Which of the following statements factors contributed to the 2007-2009 financial crisis?
A)The cultural shift that allowed the public to "spend now and pay later"-rather than their parents' or grandparents' philosophy of "save now, spend later" led to increases in consumer debt levels.
B)U.S.government officials engaged in efforts to expand home ownership by encouraging lenders to make mortgage loans available to a broader spectrum of individuals.
C)Federal fiscal policy also became simulative, with increased government spending and the passage of tax cuts in 2002.
D)The Federal Reserve adopted an expansionary monetary policy characterized by very low interest rates.
E)all of the above.

Question

Quizplus · Accepted Answer

All the statements listed in options A, B, C, and D contributed to the 2007-2009 financial crisis. The cultural shift towards increased consumer debt levels, government encouragement of mortgage lending, simulative fiscal policy with increased government spending and tax cuts, and the Federal Reserve's expansionary monetary policy with very low interest rates created an environment that allowed for risky lending and investing practices to flourish, ultimately causing the financial crisis.

Which of the Following Statements Factors Contributed to the 2007-2009