As the housing bubble collapsed, the combination of increasing interest rates and pessimism about future economic prospects:

Question

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As the housing bubble collapsed, people lost wealth and confidence in the economy. This led to a decrease in consumer spending since people were more hesitant about making purchases. Investment spending also decreased as businesses saw less opportunity for growth and expansion. Additionally, increasing interest rates made borrowing more expensive, further discouraging both consumption and investment spending.

As the Housing Bubble Collapsed, the Combination of Increasing Interest