Which sector was most directly impacted at the start of the Great Recession?
Show answer and explanation
Correct answer: Housing and financial sector, hit by mortgage defaults and losses
The crisis began in the housing market and quickly spread to financial institutions. Banks suffered heavy losses due to mortgage defaults.
Keep practicing
More Great Recession of 2008 questions
- What role did fiscal stimulus play during the recession?
- What was the Troubled Asset Relief Program (TARP) designed to do?
- Which group was most affected by rising unemployment during the Great Recession?
- What type of fiscal policy involves increasing government spending during a recession?
- Which outcome was a direct result of the housing market collapse?
- What was one criticism of fiscal policy during the Great Recession?