Which of the Following Contributed to the Dramatic Rise in Housing

question 144

Multiple Choice

Which of the following contributed to the dramatic rise in housing prices between 2002 and mid-year 2006?

• A) Government policy made credit for housing abundant and easily available.
• B) The Fed's restrictive monetary policy, which led to high interest rates.
• C) The tightening of loan standards by commercial lenders.
• D) The large amounts of reserves and equity capital being held by financial institutions in order to back new mortgages.

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Definitions:

Apples

A type of fruit that is grown on apple trees and comes in several varieties differing in sweetness, color, and size.

Oranges

A citrus fruit rich in vitamin C, cultivated and consumed worldwide, both fresh and as juice.

Utility Functions

Formulations representing a consumer's preference, measuring the relative satisfaction from consuming different bundles of goods.

Fair Allocations

The distribution of resources or goods among individuals or groups in a manner considered equitable, taking into account various fairness criteria.