Which of the following best summarizes the main causes of the Great Recession?
a. The end of overseas war efforts led to a deep decrease in federal spending, which reduced employment and caused a recession.
b. The stock market collapsed following the end of a bubble in technology stock prices, which caused a decrease in investment spending and a recession.
c. The collapse of housing prices led to decreased wealth and significant problems in financial markets, as well as a decrease in expected income and a stock market collapse.
d. Oil-producing countries deliberately raised the price of petroleum, leading to inflation and a deep recession.
e. The Federal Reserve raised short-term interest rates very high in an effort to decrease inflation, which also drove the economy into a recession.