value: 3\nwhen interest rates are extremely low, many people take out large loans to buy homes, this can…

value: 3\nwhen interest rates are extremely low, many people take out large loans to buy homes, this can cause a:\n a. foreclosure\n b. mortgage\n c. housing bubble\n d. bailout

value: 3\nwhen interest rates are extremely low, many people take out large loans to buy homes, this can cause a:\n a. foreclosure\n b. mortgage\n c. housing bubble\n d. bailout

Answer

Brief Explanations:

When interest rates are very low, increased borrowing for home - buying can drive up housing prices artificially. A housing bubble occurs when housing prices rise rapidly due to speculation and excessive demand, which is exactly what can happen with low - interest - rate induced borrowing. Foreclosure is the process of a lender taking back a property when a borrower defaults. A mortgage is a loan for buying a property. A bailout is when the government or another entity provides financial assistance to a failing entity or industry.

Answer:

c. Housing bubble