What Role Do Almost All Economists Agree the Central Bank

question 64

Multiple Choice

What role do almost all economists agree the central bank has in a financial crisis?

• A)Contractionary fiscal policy to reduce leverage
• B)Lender of last resort
• C)Expansionary fiscal policy to reduce herding
• D)No role

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Definitions:

Cyclic AMP

Cyclic AMP (cAMP) is a second messenger important in many biological processes, including the regulation of metabolism, gene transcription, and cell signaling.

Nucleotide

The basic building block of nucleic acids, such as DNA and RNA, consisting of a sugar, phosphate group, and nitrogenous base.

Purines

Nitrogenous bases with carbon and nitrogen atoms in two attached rings (e.g., adenine and guanine); components of nucleic acids, ATP, GTP, NAD1, and certain other biologically active substances. Compare with pyrimidines.

Pyrimidines

A class of nitrogenous bases found in nucleic acids, including cytosine, thymine (in DNA), and uracil (in RNA).