Both overspending on credit by households and low interest rates set in motion the events that led to the 2007-2008 recession.

Question

Quizplus · Accepted Answer

Overspending on credit by households led to the buildup of a housing bubble, which eventually burst and triggered the recession. Low interest rates played a role in fueling the housing bubble by making borrowing cheap and encouraging speculative investment in real estate.

Both Overspending on Credit by Households and Low Interest Rates