Which of the Following Actually Caused of the GFC

question 61

Multiple Choice

Which of the following actually caused of the GFC?

• A) The expansion of borrowing and the decline of credit standards, which created 'toxic' (subprime) debt.
• B) An overly loose monetary policy in the USA, which promoted an asset price bubble and generally facilitated subprime lending.
• C) A and B.
• D) None of the above.

---

Definitions:

Infant Memory

Refers to the ability of babies and very young children to remember information, often surprising given their developmental stage.

Reminder

A prompt or cue that serves to bring a fact, event, or obligation back to one's consciousness.

Mirror Neurons

Neurons that fire both when an individual acts and when the individual observes the same action performed by another, thought to be related to understanding actions, empathy, and learning through imitation.

Emotions

Complex psychological states involving thoughts, feelings, physiological changes, and behaviors in response to stimuli.