What caused banks to start making sub-prime loans to too many people so that in 2007-08 the mortgages were not paid and the recession started?

DeVry University

Principles of Economics

Money and Banking (graded)

1. What caused banks to start making sub-prime loans to too many people so that in 2007-08 the mortgages were not paid and the recession started?

Monetary Policy and the Federal Reserve

2. What are the three tools (sometimes there are four listed) that the Fed uses to control monetary growth? How do they work?


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