Economy, asked by carolinaf2, 1 year ago

Explain how the great recession illustrated one of the weaknesses of a free enterprise

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Answered by UjjwalAgarwal107
0
There are no weaknesses in free enterprise. The recession was caused by government interference in free enterprise. Banks were forced to provide mortgages to people who would not otherwise qualify. Housing prices ran way up then crashed when foreclosures ballooned. An older free enterprise interference by government was "redlining." Lending institutions could not discriminate by race or by location when granting mortgages.
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