The Great Recession of 2008 That Rocked the World in the Autumn

question 47

Multiple Choice

The Great Recession of 2008 that rocked the world in the autumn of that year was

• A) precipitated by the bursting of the American housing bubble.
• B) prompted by the sudden, unanticipated ending of the Federal Reserve System's easy-money policies.
• C) caused by the unsuccessful nationalization of the two biggest mortgage companies, "Freddie Mac" and "Fannie Mae."
• D) caused by the collapse of the Wall Street investment firm of Lehman Brothers.
• E) not immediately addressed by the Bush administration, which took several months before responding to the economic collapse.

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Definitions:

Governmental Actors

Individuals or entities that operate within the governmental framework to influence policies, legislation, or governance.

Formulating Foreign Policy

The process of creating strategies and principles that govern a country's interactions with other nations.

Constitution

Foundational principles or long-standing precedents that direct the governance of a state or different organizations.

Trade Policy

Refers to the laws and regulations adopted by a country to manage its international trade, affecting how goods and services are imported and exported.