What Was One of the Major Factors Causing the Housing

question 8

Multiple Choice

What was one of the major factors causing the housing bubble to burst in 2008?

• A) The lack of local zoning ordinances
• B) The global financial sector became dependent on unregulated financial instruments that could only remain valuable if housing prices continued to rise.
• C) Efforts by state governments to induce uncontrolled growth by subsidizing housing loans
• D) Severe land use regulations were put into place in 2007 by hundreds of local governments.

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Definitions:

Correlation Coefficient

A statistical measure that indicates the extent to which two variables change together.

Measure Of Dispersion

An indication of how spread out the values of a dataset are, which can include range, variance, or standard deviation.

Standard Deviation

A statistical measure of the dispersion or variability in a set of values, indicating how much the values deviate from the mean of the set.

Standard Deviation

A measure of the dispersion or spread in a set of data; it shows how much variation there is from the average.