Question

What was one of the major reasons why the United States was slower to recover from the 2008–2009 recession than Canada?

a. The impact of the rise in house prices on Canadian household consumption was greater.
b. Housing price declines in the United States were much larger than in Canada.
c. Housing price declines in Canadian were much larger than in the United States.
d. The impact of the rise in house prices on American household consumption was greater.

Answer 1

Larger housing price declines in the United States compared to Canada, resulting in home foreclosures and a financial crisis, were a major reason for the U.S.'s slower recovery from the 2008–2009 recession.

Step-by-step explanation:

One of the major reasons why the United States was slower to recover from the 2008–2009 recession compared to Canada was that housing price declines in the United States were much larger than in Canada. This significant drop in home values led to mass home foreclosures and was compounded by high levels of consumer speculation in the mortgage market. The loss of wealth from the housing market crash, in turn, may have led to a reduction in consumer spending, which posed serious challenges to economic recovery efforts. Unlike Canada, the financial crisis had a more direct and severe impact on the U.S. economy, leaving many Americans unable to meet mortgage payments and resulting in widespread defaults and reduced consumer confidence.