1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
katrin2010 [14]
3 years ago
12

What do economists mean by a "bubble"? why do many economists believe that there was a housing bubble in the united states betwe

en 2000 and 2005?
History
1 answer:
tester [92]3 years ago
4 0
A bubble is a situation in which there is a rapid escalation of <span>asset prices which is later followed by a contraction of the same. When there is a surge in asset prices which is unwarranted by the fundamentals of the assets that are in question and an exuberant market behavior supports it, a bubble is created. When nobody buys anymore and starts selling everything off then the bubble is deflated.

In that period, many people started buying homes with mortgages with adjustable rates. When the stocks started rising so did the prices of mortgage interest rates and people started realizing they couldn't pay back their loans and started losing homes. When the homes were taken away, there was a realization that the houses were not worth at all the price that was owed and that banks would suffer severe losses because of the bad mortgages that they gave. This led to the 2008 recession.</span>
You might be interested in
What was life like for the African Americans during WW2
11111nata11111 [884]

Answer: Over 2.5 million African-American men registered for the draft, and black women also volunteered in large numbers. While serving in the Army, Army Air Forces, Navy, Marine Corps, and Coast Guard, they experienced discrimination and segregation but met the challenge and persevered. They served their country with distinction, made valuable contributions to the war effort, and earned high praises and commendations for their struggles and sacrifices.

Hoped this Helped .

Explanation:

3 0
3 years ago
Explain two factors that could motivate a nation to carry out genocide
kondaur [170]
Fear
Gain
Deference of authority
3 0
3 years ago
Why was John Dickinson chose for the articles of confederation
murzikaleks [220]

Answer:

Dickinson prepared the first draft of the Articles of Confederation in 1776, after others had ratified the Declaration of Independence over his objection that it would lead to violence, and to follow through on his view that the colonies would need a governing document to survive war against them.

Explanation:

6 0
3 years ago
What extent was the modern period (1750-1914) a period of economic change?
fiasKO [112]

Answer:

The response earned 1 point because it identifies capitalism as the economic change in the period 1750–1900 that led to the formation of new elites.

Explanation:

Plz mark brainliest thanks

8 0
3 years ago
As a result of the 1942 “Europe-first” strategy,
VARVARA [1.3K]
As a result of the 1942 “Europe-first” strategy, 
<span>C. lost many battles against Japan’s powerful military. </span>Europe first is also called as Germany first, was the key element of the grand strategy. This agreed by the United States and the United Kingdom during World War II.
3 0
3 years ago
Read 2 more answers
Other questions:
  • How did police officers respond to the demonstrations at the Democratic National Convention?
    6·2 answers
  • What are theories that historians have come up with to explain what caused the salem witch hysteria?
    8·1 answer
  • "It is against all reason to suppose that this content can long remain subject to any external power" this argument was stated b
    5·1 answer
  • The Wangarans went to great lengths to make sure....
    10·1 answer
  • In 1964 martin luther king jr was awarded
    7·2 answers
  • What were the effects of the switch to farming
    12·1 answer
  • Need help with answer
    10·2 answers
  • What event caused President Bush’s approval rating to skyrocket?During 911
    7·1 answer
  • Why did women in the West often have more rights than women in other regions of the United States?
    5·1 answer
  • Select the all facts applying to the Articles of Confederation..
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!