The recession of 2007-2009 happened in part because, after the housing bubble burst in 2006, disruptions in the financial market made it difficult:
A) for government to finance deficit spending.
B) to fight inflation.
C) for businesses and consumers to borrow money.
D) to shift the PAE line downwarD.After the housing bubble burst, many loans went bad and banks and other lenders reduced availability of loans.
Correct Answer:
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