Which of the Following Contributed to the Dramatic Rise in Housing

question 3

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:

Babbling Patterns

The repetitive vocalizing of consonant and vowel combinations by infants, considered a precursor to the development of language.

Preoperational

Refers to a stage in Piaget's theory of cognitive development where children aged 2-7 engage in symbolic play but have not yet mastered the concept of logical operations.

Cognitive Development

The process through which individuals acquire and understand knowledge, including thinking, problem-solving, and decision-making abilities, over the course of their life.