In contrast to the dot-com stock market bubble,the bursting of the housing bubble __________,implying __________.
A)affected almost every financial institution;risk was well-diversified
B)affected a small number of investors;the risk was not well-diversified
C)hurt every household;households paid too high an interest rate
D)was attenuated by a quick response by the Fed;the Fed's policy was effective
E)increased household expenditures;it had little effect on the macroeconomy

Question

Quizplus · Accepted Answer

The bursting of the housing bubble affected a small number of investors, such as those who invested heavily in the subprime mortgage market. The risk was not well-diversified because many investors were too heavily concentrated in this market. Unlike the dot-com bubble, the bursting of the housing bubble did not have a widespread impact on the financial system or economy as a whole.

In Contrast to the Dot-Com Stock Market Bubble,the Bursting of the Housing