Conventional Monetary and Fiscal Policies During a Financial Crisis Are

question 49

Multiple Choice

Conventional monetary and fiscal policies during a financial crisis are aimed at _____, while acting as a lender of last resort or injecting government funds into the financial system during a financial crisis is aimed at _____.

• A)increasing output; reducing inflation
• B)expanding aggregate demand; restoring confidence in the financial system
• C)increasing corporate wealth; increasing household wealth
• D)expanding aggregate supply; reducing the national debt

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Definitions:

Income Distribution

The allocation of earned income or revenue to various stakeholders, such as dividends to shareholders or wages to employees.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset since it was put into use, representing how much of its value has been used up.

Allowance

A provision in accounting for a reduction in the value of receivables or inventories, often related to potential bad debts or damaged goods.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.