A couple years ago, you wanted to obtain a mortgage and prequalified for an interest rate of 3 % , but ultimately you decided to wait to buy until you have saved for a larger down payment. Now, with a similar income level and credit score, you prequalify for an interest rate of 5 . 5 % . Which of the following could have led to this situation?
a . The Federal Reserve raised the federal funds rate.
b . The risk premium fell, due to changes in financial markets.
c . The federal government raised income taxes, discouraging spending.
d . High oil prices caused a general rise in prices, pushing up interest rates.