which of the following is not identified as a factor contributing to the Great Recession? A. Increases in interest rates made it hard for people to repay their debt. B. Burst in housing price bubble C. High volatility of oil prices D. Disposal of US assets by developing countries

which of the following is not identified as a factor contributing to the Great Recession?
A. Increases in interest rates made it hard for people to repay their debt.
B. Burst in housing price bubble
C. High volatility of oil prices
D. Disposal of US assets by developing countries

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Answer

• D. Disposal of US assets by developing countries
  Explanation:
  One important cause of the great recession was the bursting of the housing bubble. This was caused by various factors such as low interest rates, ease to access credit, better mortgage product offerings and economic prosperity. In the great recession, high oil prices were a partial cause of the financial crisis as Crude oil prices soared from $20 per barrel (WTI) in the 2001 recession to a brief peak of $140 early in 2008. Another factor was the Latin American debt crisis which was triggered by high interest rates that made it harder for the indebted Latin American countries to pay back their debts. Another factor was the U.S savings and loans crisis as well as the automotive industry crisis.