Which statement best describes the state of the economy when president obama took office? a. inflation was out of control, and americans could now afford basic necessities b. financial institutions were failing, housing prices had fallen, and unemployment was rising. c. employment was increasing, and businesses were making record profits. d. inflation was rising, interest rates were rising, and housing prices were rising.

B. Financial institutions were failing, housing prices had fallen, and unemployment was rising.

President Obama took office in the shadow of the financial crisis of 2007-08 that had been caused by subprime housing market. Financial institutions were weak and unemployment rising

B. Financial institutions were failing, housing prices had fallen, and unemployment was rising.

john maynard keynes developed new economic theories in response to the : b) great depression of the 1930s. his theories are so important that they are known as "keynesianism". in his works he supports the idea of a government with deeper involvement and intervention to end the great depression.