In 2006, a significant indicator of the U.S. economic decline was:
A) a significant drop in interest rates
B) a sharp increase in unregulated Ponzi-type security sales
C) rising defaults by subprime mortgage borrowers
D) a large increase in loan default due to unemployment

Question

Quizplus · Accepted Answer

The rising defaults by subprime mortgage borrowers was a significant indicator of the U.S. economic decline in 2006. This was due to the lending practices that allowed many people with poor credit histories to obtain mortgages. As these borrowers began to default on their mortgage payments, it triggered the collapse of the housing market and had a ripple effect on the overall economy.

In 2006, a Significant Indicator of the U