One of the Trigger Points for the Financial Crisis of 2007-2009

question 88

Multiple Choice

One of the trigger points for the financial crisis of 2007-2009 was when

• A) interest rates on adjustable-rate mortgages were reset at a higher level.
• B) foreigners started to sell off their holdings of U.S. financial instruments.
• C) the Federal Reserve started to raise short-term interest rates.
• D) the federal government started to engage in deficit spending.

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