Which of the Following Factors Was Most Responsible for Making

question 14

Multiple Choice

Which of the following factors was most responsible for making America's sub-prime mortgage crisis into a global recession?

• A) Rapidly increasing U.S. unemployment.
• B) Growing economic interdependence.
• C) The size of the U.S. budget deficit.
• D) The rapid increase in U.S. home prices.

---

Definitions:

Income Increased

A scenario where an individual's or entity's earnings rise, affecting their purchasing power and economic well-being.

Income Elasticity

A measure of how the demand for a good or service changes relative to a change in consumers' income.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases.

Inferior

A term used in economics to describe goods whose demand decreases as the income of the consumer increases, contrasted with normal goods.