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In the 2008 economic recession, why did lenders feel comfortable lending to subprime borrowers who were more likely to default if interest rates increased? 1)

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In the 2008 economic recession, why did lenders feel comfortable lending to subprime borrowers who were more likely to default if interest rates increased? 1) The loans were backed by the government, so if a borrower defaulted, the lenders would still be paid back the principal. 2) It was highly unlikely that the interest rates would increase, so lenders felt confident that the mortgages would remain affordable. 3) Lenders immediately sold the mortgages to banks, and the banks bundled them together and sold them to investors. O4) The loans were backed by the bank, so if a borrower defaulted, the bank would sell the home and then make payments to the lender. 5) Lenders transferred the default risk by selling the mortgages directly to investors

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