The objective of the Fed and the government is to

a. prevent asset bubbles by recognizing them in real time.
b. mitigate the consequences of asset bubbles by recognizing them in real time.
c. prevent asset bubbles by recognizing bad lending practices.
d. mitigate the consequences of asset bubbles by recognizing bad lending practices.


d

Economics

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Figure 5-5 shows a consumer budget line for french fries and hamburgers. The price of an order of fries is $2. This implies that the price of a burger is

A. $1. B. $2. C. $4. D. $8.

Economics

Refer to Figure 5-5. Suppose the current market equilibrium output of Q1 is not the economically efficient output because of an externality. The economically efficient output is Q2. In that case, diagram shows

A) the effect of an excess demand in a market. B) the effect of a subsidy granted to producers of a good. C) the effect of a positive externality in the consumption of a good. D) the effect of a negative externality in the consumption of a good.

Economics

The "invisible hand" directs economic activity through

a. advertising. b. prices. c. central planning. d. government regulations.

Economics

"The prisoners' dilemma" is a concept that helps us understand why

What will be an ideal response?

Economics