In Contrast to the Dot-Com Stock Market Bubble, the Bursting

Multiple Choice

In contrast to the dot-com stock market bubble, the bursting of the housing bubble ________, implying ________.

A) affected almost every financial institution; the risk was well diversified
B) affected a small number of investors; the risk was not well diversified
C) hurt every household; households paid too high an interest rate
D) was attenuated by a quick response by the Fed; the Fed's policy was effective
E) increased household expenditures; it had little effect on the macroeconomy