Which of the Following Is Not One of the Causes

question 18

Multiple Choice

Which of the following is not one of the causes of the skyrocketing mortgage default rates that triggered the financial crisis in 2007-2008?

• A) Mortgage lending became very lax.
• B) Many people took on mortgages that they were simply incapable of repaying.
• C) Housing prices increased drastically.
• D) Real estate values started declining after having risen for many years.

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Definitions:

Id

A component of Sigmund Freud's psychoanalytic theory, representing the instinctual drives and the source of psychic energy.

Superego

In psychoanalytic theory, the part of the personality that represents internalized ideals, providing standards for judgment and for future aspirations.

Resistance

In psychology, a phenomenon where individuals show opposition or avoidance in response to certain stimuli or interventions.

Reaction Formation

A defense mechanism where an individual unconsciously replaces undesirable or anxiety-inducing thoughts or feelings with their opposites.