There are some economists who argue that low mortgage interest rates in the time period preceeding the financial crisis of 2007-2009 were a result of a ___________ in global savings.They argue that emerging countries began to save ___________ which helped to _____________ the supply of loanable funds in the United States.

Question

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Economists argue that a "glut" or excess of global savings caused low mortgage interest rates before the financial crisis of 2007-2009. Emerging countries began to save more, which increased the supply of loanable funds in the United States. This increased supply of funds led to lower mortgage interest rates. Therefore, option B, which suggests a "glut" of savings, more savings from emerging countries, and an increase in the supply of funds, is the best choice.

There Are Some Economists Who Argue That Low Mortgage Interest