Which of the Following Is Not a Tool the Government

question 14

Multiple Choice

Which of the following is not a tool the government used to bail out banks that were deemed "too big to fail"?

• A) Increased government spending
• B) Fiscal policy
• C) The Troubled Asset Relief Program (TARP)
• D) Breaking up large banks into smaller entities

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Definitions:

Convex Preferences

A representation in economics of a consumer preference structure where a mix or combination of two goods is preferred over either of the two goods alone, indicating a desire for diversification.

Indifference Curves

A graphical representation of different bundles of goods between which a consumer is indifferent, showing the same level of satisfaction or utility for each point on the curve.

Downward Sloping

A characteristic of a graph or curve that shows a decrease in one variable as the other variable increases, often related to demand curves in economics.

Nonconvex Preferences

Preferences where an individual values mixtures of goods or services less than pure bundles, violating the convexity assumption in utility theory.