Which of the following was a lesson from the 2007-2009 financial crisis?
a. The financial system needed more leverage in order to operate.
b. The job of stabilizing the economy should be assigned exclusively to monetary policy.
c. Monetary policy is finished once the Fed reduces the federal funds rate to zero.
d. The business cycle still exists.
d
You might also like to view...
The social cost is negative in case of a negative externality
a. True b. False Indicate whether the statement is true or false
Refer to Figure 8.8. At the market price of $8 per bushel, if this farmer produces 700 bushels of soybeans, the total revenue would be A) $1,200. B) $2,800. C) $5,600. D) $8,400.
Goods that have spillover costs affect our collective well-being and therefore can be overproduced because
A. The government is concerned about broad economic welfare. B. The government has failed to enforce contract provisions. C. Most businesses are more concerned about profits than how the environment is affected. D. The government has failed to establish rules for contracts.
The successor to GATT in 1995 is
A. the World Trade and Tariff Organization. B. the World Trade Agreement. C. the World Trade Organization. D. the World Agreement on Tariff and Trade.