Exam 20: Appendix: the Crisis of 2008: Causes and Lessons for the Future

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Which of the following resulted from Fed policy that first kept short-term interest rates extremely low during 2002-2004, and then pushed them up substantially during 2005-2006?

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Which of the following was an underlying cause of the economic crisis of 2008?

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Between 2001 and 2005, sub-prime (including Atl-A) mortgages ____________ as a share of the total.

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Which of the following accurately describes the relationship between mortgage default rates and the 2008 recession?

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