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Asked by Hayden Molokach on May 06, 2024

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The recession that set in after December 2007 can be attributed to:

A) an increase in 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.

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Home Prices

the amount of money required to purchase homes in a particular area, influenced by various factors including location, demand, and economic conditions.

Foreclosures

The legal process through which a lender takes control of a property from the borrower due to failure to make the required mortgage payments.

  • Acquire knowledge on the determinants and outcomes of crucial economic recessions and financial downturns.
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Sydnee HawkinsMay 13, 2024
Final Answer :
B
Explanation :
The decline in home prices and increase in foreclosures led to a decrease in consumer spending and a contraction in the economy, ultimately leading to the recession. The other options listed may have had an impact on the economy, but they were not the primary cause of the recession.

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