3
QuizMultiple Choice

America in the Bush Years

Question 3 • EAP-Virginia and US History B CR

What was a major cause of the US recession that began in 2008?

Answer
A
defaults on mortgages for homes
B
consumers not buying new homes
C
damage from Hurricane Katrina
D
a rise in the American stock market

Explanation

A major cause of the 2008 recession was widespread defaults on home mortgages, especially risky loans that borrowers could not repay. As homeowners defaulted, housing prices fell and financial institutions faced large losses, helping trigger a broader economic downturn. Consumers buying fewer new homes was part of the housing slowdown, but mortgage defaults were a central cause.

AI-written and checked against the verified answer.

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