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Following the U.S. financial crisis in 2008, some observers assert that the policies of Fed Chairman Greenspan contributed to the crisis. Which of the following is a criticism of Greenspan's policies?
I. The very low interest rates used to fight the 2001 recession were maintained for too long, leading to the real estate bubble.
II. The Fed provided real estate developers with liquidity to encourage property development and offered tax breaks to first-time home buyers, which in turn fueled the real estate bubble.
III. The Fed did not promote appropriate regulations to deal with the new financial instruments that were created in the early 2000s.
Personality Development
The gradual and ongoing change in a person's personality traits and patterns over time, influenced by biological, social, and environmental factors.
Longitudinal Studies
Research methods that involve repeated observations of the same variables over short or long periods of time.
Social Dominance
The degree to which an individual or group can impose their will over others within a social setting, often through a combination of leadership, influence, and hierarchy.
Erik Erikson
A developmental psychologist and psychoanalyst known for his theory on the psychosocial development of humans across eight stages from infancy to adulthood.
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