Lessons That Economists and Policy Makers Have Learned from the Recent

question 75

Multiple Choice

Lessons that economists and policy makers have learned from the recent global financial crisis include

• A)Developments in the financial sector have a far greater impact on economic activity than was earlier realized.
• B)The zero lower bound on interest rates can be a serious problem.
• C)The cost of cleaning up after a financial crisis is very high.
• D)Price and output stability do not ensure financial stability.
• E)All of the above.

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Definitions:

Subject Matter

The specific object or topic under consideration, discussion, or legal examination.

Quantity

A specific or measurable amount of something.

Master Of His Offer

The principle that the offeror controls the terms and conditions of an offer until it is accepted.

Offeror

The party in a contract negotiation that makes the initial offer or proposal.