What was a primary cause of the Great Recession of 2008?
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Correct answer: Collapse of the housing bubble and subprime mortgage defaults
The Great Recession was largely triggered by the collapse of the housing market and widespread defaults on subprime mortgages. This led to massive losses in financial institutions and a credit crisis.
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More Great Recession of 2008 questions
- Which financial practice contributed significantly to the 2008 financial crisis?
- What was the main goal of fiscal policy during the Great Recession?
- Which major fiscal policy measure was enacted in 2009 to combat the recession?
- Which sector was most directly impacted at the start of the Great Recession?
- What role did fiscal stimulus play during the recession?
- What was the Troubled Asset Relief Program (TARP) designed to do?