Question: The accompanying figure shows new U.S. housing starts, in thousands of units per month, between January 1980 and January 2014. The graph shows a large drop in new housing starts in 1984-1991 and 2006-2009. New housing starts are related to the availability of mortgages.
a. What caused the drop in new housing starts in 1984-1991?
b. What caused the drop in new housing starts in 2006-2009?
c. How could better regulation of financial institutions have prevented these two instances?
