Regulatory Policies Requiring Lenders to Extend More Low Down-Payment Loans

Multiple Choice

Regulatory policies requiring lenders to extend more low down-payment loans to higher-risk borrowers along with the Fed's low short-term interest rate policy during 2002-2004 caused

A) an increase in demand for housing and higher housing prices.
B) an increase in demand for housing and lower housing prices.
C) a reduction in demand for housing and higher housing prices.
D) a reduction in demand for housing and lower housing prices.