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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.
1
Expert's answer
2019-09-24T08:47:10-0400

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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