Which of the Following Accurately Describes the Relationship Between Mortgage

question 10

Multiple Choice

Which of the following accurately describes the relationship between mortgage default rates and the 2008 recession?

• A) The recession of 2008 triggered the initial increase in the mortgage default rate.
• B) The rise in the mortgage default rate preceded the recession and it was a major cause of the 2008 economic downturn.
• C) Both the increase in the mortgage default rate and the economic recession were the result of the stock market crash of 2008.
• D) The rise in the mortgage default rate and the economic recession were separate issues and there was no relationship between the two.

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Definitions:

Attracted

The experience of being drawn to or having a particular interest or affection for someone or something, often due to qualities that are appealing to the senses or emotions.

Shy

Characterized by feeling nervous or timid in the presence of others, often leading to avoidance of social situations.

Dating

A form of romantic engagement that involves going out and spending time with someone to whom one is attracted, with the aim of assessing compatibility.

Just-world Hypothesis

The cognitive bias that a person's actions always bring morally fair and fitting consequences to that person, essentially "you get what you deserve."