If the Federal Government Had Not Bailed Out the Large

question 212

Multiple Choice

If the federal government had not bailed out the large financial institutions during the financial crisis of 2008-2009,

• A) the rise in overall stock prices would likely have been smaller.
• B) the rise in overall stock prices would likely have been larger.
• C) the fall in overall stock prices would likely have been smaller.
• D) the fall in overall stock prices would likely have been larger.

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Definitions:

Standard Error

A statistical measure that quantifies the variability or spread of sample means around the population mean.

Variance

The square of the standard deviation and another measure of a distribution’s spread or dispersion.

Independent Variable

The variable that is manipulated or controlled by the researcher to test its effect on the dependent variable.

Compound Interest

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.