What caused the drop in new housing starts in given years

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Reference no: EM131530672

Question: The accompanying figure shows new U.S. housing starts, in thousands of units per month, between January 1980 and January 2014. The graph shows a large drop in new housing starts in 1984-1991 and 2006-2009. New housing starts are related to the availability of mortgages.

a. What caused the drop in new housing starts in 1984-1991?

b. What caused the drop in new housing starts in 2006-2009?

c. How could better regulation of financial institutions have prevented these two instances?

Reference no: EM131530672

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