Which of the following contributed to the strong auto sales and soaring housing prices during 2002-2004?
A) The Fed's high-interest rate policy during the period.
B) The tightening of loan standards by commercial lenders.
C) The increasing popularity of fixed-rate, long-term loans to lock in low interest rates.
D) The Fed's low-interest rate policy during the period.

Question

Quizplus · Accepted Answer

The Fed's low-interest rate policy during the period contributed to the strong auto sales and soaring housing prices by making borrowing cheaper and more accessible. This allowed consumers to purchase homes and cars at lower interest rates, resulting in increased demand and higher prices.

Which of the Following Contributed to the Strong Auto Sales