Which of the following did NOT contribute to the Great Recession of 2007-2009?
A)The collapse of the U.S.housing market.
B)The tremendous growth of the sub-prime lending market.
C)The liquidity crisis that resulted when banks became unwilling to lend into a collapsing market.
D)All of the above contributed to the Great Recession.

Question

Quizplus · Accepted Answer

All three options- A, B, and C- contributed to the Great Recession of 2007-2009. The collapse of the U.S. housing market resulted in a significant decrease in home prices and a surge in foreclosures, which further led to the downfall of the banking system. The tremendously growth of subprime lending market intensified the risks associated with the housing market. Finally, the liquidity crisis resulted when banks became unwilling to lend into a collapsing market, leading to the failure of many financial institutions, which ultimately led to the Great Recession.

Which of the Following Did NOT Contribute to the Great