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27) Which of the following factors provoked the 2007-9 financial crises in the U.S.:                      A) Risks...

27) Which of the following factors provoked the 2007-9 financial crises in the U.S.:                     

A) Risks of rebalancing the world economy with increased economic disparities between countries and poor financial system management on the global scale

B) A high savings rates, excessive export and current-account surpluses

C) Political and social benefits of a sensible social policy

D) Collapse of the housing market, crash of the financial market with law savings rate and unsustainable current-account balances (deficit)

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Answer #1

27.

D

It was the bubble formation in housing market in the USA, that got busted and falling of the financial market due to its over exposure in housing market in the USA. It had contagious effect in other overseas markets where the nations had their exposure in US markets.

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