Which of the following is a macroeconomic factor that contributed to the financial crisis in 2007?

Question

Quizplus · Accepted Answer

Global saving and investment imbalances contributed to the financial crisis in 2007 by creating a situation where there was more money available to lend than there were borrowers who were creditworthy. This led to a decrease in interest rates, which made it easier for people to borrow money and buy homes. However, many of these loans were made to people who could not afford them, and when the housing market crashed, these borrowers defaulted on their loans. This led to a loss of confidence in the financial system and a global financial crisis.

Which of the Following Is a Macroeconomic Factor That Contributed