Which statement best describes the state of the economy when president obama took office? inflation was out of control, and americans could not afford basic necessities. financial institutions were failing, housing prices had fallen, and unemployment was rising. employment was increasing, and businesses were making record profits. inflation was rising, interest rates were rising, and housing prices were rising.

The correct answer is B.

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

President Obama started his presidency during the Great Recession ( general economic recline ) and severe financial crisis. The financial crisis ( subprime mortgage crisis ) was triggered by a huge decline in house prices following the collapse of the housing bubble. Financial institutions ( mostly banks ) were struggling which forced the government to bailout them by buying their toxic assets. Obama signed the $787 billion stimulus package into law with the hope that this money would help to create more jobs. The unemployment rate reached 10,2% which was the highest level in 26 years.

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

Explanation: