Which of the Following Contributed to the Dramatic Rise in Housing

question 3

Multiple Choice

Which of the following contributed to the dramatic rise in housing prices between 2002 and mid-year 2006?

• A)government policy made credit for housing abundant and easily available
• B)the Fed's restrictive monetary policy, which led to high interest rates
• C)the tightening of loan standards by commercial lenders
• D)the large amounts of reserves and equity capital being held by financial institutions in order to back new mortgages

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Definitions:

Self-Talk

The internal dialogue that individuals have with themselves, which can be positive or negative.

Growing Dissatisfaction

The increasing feeling of unhappiness or discontentment in a situation or relationship.

Simple Conflict

A disagreement or discrepancy between individuals or groups that is straightforward and can be resolved with minimal complexity.

Pseudoconflict

A misunderstanding that arises from poor communication, leading to the perception of conflict where there is none.