Question

During the Great Recession, a major financial crisis followed the collapse of housing prices, which led to ____. Multiple Choice a decrease in the money supply by the Federal Reserve the decline in the health of many large financial firms and banks an increase in income tax rates to shrink the federal budget deficit an increase in expected income

Answer 1

Answer:

decline in the health of  many large financial firms and banks

Explanation:

During the Great Recession, a major financial crisis followed the collapse of housing prices, which led to the decline in the health of many large financial firms and banks. That is because too many individuals lost all of their money in investments which causes the banks to lose money as well on the loans that they provided to those individuals.

Answer 2

Answer:

the decline in the health of many large financial firms and banks

Explanation:

To say that major financial institutions suffered due to the great recession is like hitting your head on purpose and then blaming someone else for your own actions. Large financial institutions and banks were the cause of the great recession and since they were "too big to fail" American taxpayers paid for their mistakes.

The Troubled Asset Relief Program (TARP) was a government program that basically lent money to self-injured banks and also bought toxic assets from them. Toxic assets means the junk securities (mortgage backed securities) that they traded between each other.