Which of the Following Was Not a Lesson from the 2007-2009

question 33

Multiple Choice

Which of the following was not a lesson from the 2007-2009 financial crisis?

• A)Regulatory failures were the result of weaknesses across the regulatory structure.
• B)The financial system operated with too much leverage.
• C)The business cycle no longer applies to economic analysis.
• D)Monetary policy alone may not be sufficient to stabilize aggregate demand.

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Definitions:

Exchange Rate

is the value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another currency.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a negative balance of trade.

U.S. Dollar Price

The cost of an item or service expressed in terms of the United States currency.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, enabling more efficient international trade.