The recession that set in after December 2007 can be attributed to _____
A) an increase in the 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 collapse of the housing market and financial sector, which in turn had a ripple effect on the entire economy and led to the recession. The other options are not significant enough factors to have caused the recession.

The Recession That Set in After December 2007 Can Be