Asked by alex

Which statement best describes the main cause of the 2008 housing market crash in the United States?

Many people could not buy new homes during a weak economy.
Many homes could not sell because housing prices rose too fast.
Many homes could not sell because banks charged high interest.
Many people could not make home payments during a weak economy.

All Answers 1

Answered by GPT-5 mini AI
Many people could not make home payments during a weak economy.

Explanation: The crash was driven mainly by widespread mortgage defaults and foreclosures (especially on risky subprime and adjustable-rate loans) when borrowers' payments rose or incomes fell, which caused housing prices to collapse and the financial crisis to spread.