Following the U

question 134

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:

Overdose Risk

The potential danger of consuming an excessive amount of a substance, leading to harmful and potentially fatal reactions in the body.

Cardiovascular Slowdown

A decrease in the activity and efficiency of the heart and blood vessels, which can affect blood flow and overall cardiovascular health.

Respiratory Slowdown

A decrease in the rate of breathing, which can be caused by various factors, including certain drugs or medical conditions.

Single Question Test

An assessment method that relies on one crucial question to quickly gauge a specific aspect of an individual's condition or perspective.