The Housing Bubble That Began Building in 2001 Was Primarily

question 153

Multiple Choice

The housing bubble that began building in 2001 was primarily the result of

• A)the availability of low-cost affordable homes.
• B)low interest rates and increased liquidity provided by the Federal Reserve.
• C)a change in income tax policy that favored home ownership.
• D)increased demand for U.S.real estate by international investors.

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Definitions:

Monopolistic Competition

A market structure in which many companies sell products that are similar but not identical.

Differentiated

Products or services that are distinct from one another due to variation in design, quality, or other attributes, allowing them to appeal to different consumer preferences.

Starbucks

An American multinational chain of coffeehouses and roastery reserves known for its signature coffee drinks, teas, and baked goods, with a global presence.

Quality

The standard of something as measured against other similar things; a degree or level of excellence.