what were the effects the drop housing prices the late 2000s? check the boxes apply. many people pay | Question AI (2024)

Many people could not pay their mortgages, Loan losses hurt banks all over the world, The entire economy was harmed.

The question is asking about the consequences of the housing price drop that occurred in the late 2000s. This is a historical event that led to the Great Recession, a severe worldwide economic crisis. <br /><br />1. Many people could not pay their mortgages: This is true. When housing prices dropped, many homeowners found themselves in a situation where the value of their home was less than the amount they owed on their mortgage. This led to a significant number of people being unable to pay their mortgages, resulting in a high rate of foreclosure.<br /><br />2. Banks made larger profits from selling millions of houses: This is not true. The drop in housing prices led to a significant loss for banks. Many homeowners were unable to pay their mortgages, leading to foreclosures. Banks had to sell these foreclosed houses at a lower price than the original mortgage amount, resulting in a loss.<br /><br />3. Loan losses hurt banks all over the world: This is true. The housing market crash led to significant losses for many banks. These losses were due to the fact that many homeowners defaulted on their mortgages, leading to loan losses for the banks.<br /><br />4. The entire economy was harmed: This is true. The housing market crash was a significant event that led to a global economic recession. The drop in housing prices led to a decrease in consumer spending, which had a negative impact on the entire economy.

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