Hovnanain Enterprises,a Residential Home Builder Based in New Jersey,did Well

question 265

Multiple Choice

Hovnanain Enterprises,a residential home builder based in New Jersey,did well during the mid-2000s but did not do so well in during and immediately after the recession of 2007-2009.The reason for this is

• A)the Fed kept low interest rates in the mid-2000s but raised interest rates in 2007 to help fight inflation.
• B)the Fed kept low interest rates in the mid-2000s but by 2007 the housing bubble had burst.
• C)the Fed raised interest rates in the mid-2000s but lowered interest rates in 2007 to revive the housing market.
• D)the Fed raised interest rates in the mid-2000s and raised interest rates in 2007 to help fight inflation.