The accompanying figure shows new U.S. housing starts, in thousands of units per month, between January 1980
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The accompanying figure shows new U.S. housing starts, in thousands of units per month, between January 1980 and March 2020. The figure shows a large drop in new housing starts from 1984–1991 and 2006–2009. New housing starts are related to the availability of mortgages.
a. What caused the drop in new housing starts from 1984– 1991?
b. What caused the drop in new housing starts from 2006– 2009?
c. How could better regulation of financial institutions have prevented these two instances?
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a Drop in New Housing Starts from 19841991 The drop in new housing starts during this period was largely attributed to the savings and loan crisis The ...View the full answer
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