The Housing Industry Crash in 2007

question 1

Multiple Choice

The housing industry crash in 2007:

• A) affected only some reckless speculators
• B) proved the virtue of free-market capitalism
• C) sent bank profits soaring, given all the homes they were able to acquire through foreclosure
• D) froze credit and provoked a recession
• E) had long been predicted by the Bush administration

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Definitions:

Eighth Amendment

Part of the Bill of Rights that prohibits the federal government from imposing excessive bail, excessive fines, or cruel and unusual punishment.

Cruel and Unusual Punishment

A legal doctrine that prohibits inhumane or excessively disproportionate sentences for crimes, as outlined in the Eighth Amendment of the U.S. Constitution.

Judicial Review

The power of courts to assess the constitutionality of laws and government actions, crucial for upholding the rule of law.

Capital Punishment

The legally authorized killing of someone as punishment for a crime, often referred to as the death penalty.