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Answer to Question #95085 in Macroeconomics for PEPITO
Question #95085
Housing prices rose very rapidly during 2002 to 2007. Show and explain why.
Expert's answer
The housing prices rose sharply between 2002 to 2007 because the demand for new houses increased. The mortgage default rate also increased because a huge number of low standard loans were made, and the maximum people had no possibility to repay the mortgage.
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