The events following 2006 shook the global markets, leading to a historic economic and financial crisis that affected individuals, businesses, and governments around the world. financial crisis. grew as the demand for housing increased in the early 2000 s, is considered to be one cause of the 2007 crisis. Which of the following events contributed to the 2007 financial crisis? Check all that apply. Homeowners who took out mortgages could also use their home equity as collateral to generate a home equity line of credit and use additional loans to fund discretionary spending. The Federal Reserve raised short-term interest rates in the early 2000 s. The federal government encouraged home ownership among low-income families by guaranteeing the majority of mortgage loans. loans to high-risk borrowers. The credit freeze and lack of disposable income that affected consumer spending led to significant losses and revenues in the in led to lower stock prices and drove several firms to bankruptcy. Which of the following firms would have likely performed better during a financial crisis? Firms that increased the leverage in their balance sheet and invested in projects that did not add value to the firm Firms that lowered business risk and tightened cost controls