The savings glut in the early and mid-2000s led to an increase in U.S. interest rates, which spurred a stock market bubble.

Question

Quizplus · Accepted Answer

The savings glut in the early and mid-2000s actually led to a decrease in U.S. interest rates, which contributed to the housing bubble, not directly to a stock market bubble. Lower interest rates made borrowing cheaper, encouraging an increase in mortgage lending and housing purchases.

The Savings Glut in the Early and Mid-2000s Led to an Increase