Most economists believe that the return of ________ during the 2007-2009 recession is a key reason why the recession was so severe.

Question

Quizplus · Accepted Answer

Financial instability, particularly in the housing market and the banking system, was a major factor in the severity of the 2007-2009 recession. The housing bubble, which was fueled by lax lending practices and speculation, eventually burst, leading to a wave of foreclosures, declines in home values, and widespread losses for homeowners and financial institutions alike. This created a ripple effect throughout the economy, as consumer spending declined, businesses struggled to obtain credit, and unemployment levels spiked.

Most Economists Believe That the Return of ________ During the 2007-2009