The recession that set in after December 2007 can be attributed to:
A)an increase in expenditure on war.
B)a decline in home prices and an increase in foreclosures.
C)an increase in terrorist activities.
D)crop failures around the world.
E)an increase in oil prices in the international market.

Question

Quizplus · Accepted Answer

The decline in home prices and increase in foreclosures led to a decrease in consumer spending and a contraction in the economy, ultimately leading to the recession. The other options listed may have had an impact on the economy, but they were not the primary cause of the recession.

The Recession That Set in After December 2007 Can Be