The financial slump that began in the summer of 2007 was a result of:

Question

Quizplus · Accepted Answer

The financial slump that began in the summer of 2007 was primarily caused by a sharp fall in housing prices. This was due to a housing market bubble, which burst when housing prices began to decline rapidly, leading to foreclosures and mortgage defaults. This in turn triggered a chain reaction of financial problems that affected banks, investors, and ultimately the wider economy. Energy prices, tax increases, and foreign exchange market crisis did not play a significant role in causing the financial slump.

The Financial Slump That Began in the Summer of 2007