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How did irrational expectations lead to higher housing defaults? a) Homebuyers didn't borrow enough money to...

How did irrational expectations lead to higher housing defaults?

a) Homebuyers didn't borrow enough money to cover the home prices.

b) People believed housing prices would continue to fall, homes went "underwater," and since people couldn't sell they defaulted.

c) People believed housing prices would continue to increase and so they invested more in housing, which led to a decrease in prices and more defaults.

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