Which of the Following Contributed to the Nation's Economic Crisis

question 25

Multiple Choice

Which of the following contributed to the nation's economic crisis that began in 2007?

• A) The influence peddling scheme of the "Keating five" which led to a housing "bubble."
• B) Deregulation of financial institutions, which allowed them to engage in risky practices such as "subprime" mortgages.
• C) The collapse of hundreds of savings and loan institutions, which had a ripple effect throughout the American economic system.
• D) Overregulation of Wall Street, which began in the Clinton administration, eventually paralyzed credit markets.

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Definitions:

Hypatia of Alexandria

A renowned mathematician, astronomer, and philosopher of ancient Alexandria, celebrated for her intellectual achievements and tragic death.

Middle Eastern

Refers to the region encompassing Western Asia and Egypt, characterized by its distinct cultures, languages, and geopolitical significance.

Oil Producers

Companies or countries that are involved in the extraction and production of oil from the earth.

False Cause

A logical fallacy where a cause-and-effect relationship is wrongly assumed between two events because they happen sequentially.