Following the U

question 37

Multiple Choice

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.

• A) I and II only.
• B) I and III only.
• C) II and III only.
• D) I, II, and III.

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Definitions:

Persuasive Request

A communication aimed at convincing someone to grant a request or agree with a proposal through reasoned argument.

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The focus or concentration a reader gives to reading material.

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Information based on real occurrences or truths that are objective and verifiable.

State Representative

An elected official in the lower chamber of a state legislature, responsible for representing the interests of their constituents.