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Following the U

question 134

Multiple Choice

Following the U.S. financial crisis in 2008, some observers assert that the policies of Fed Chairman Greenspan contributed to the crisis. Which of the following is a criticism of Greenspan's policies?
I. The very low interest rates used to fight the 2001 recession were maintained for too long, leading to the real estate bubble.
II. The Fed provided real estate developers with liquidity to encourage property development and offered tax breaks to first-time home buyers, which in turn fueled the real estate bubble.
III. The Fed did not promote appropriate regulations to deal with the new financial instruments that were created in the early 2000s.

Definitions:

Universal Principles

Fundamental and widely accepted concepts or doctrines that guide behavior, practices, and beliefs across various disciplines and cultures.

Business Ethics

Principles and standards that determine acceptable conduct in business operations, focusing on fairness, transparency, and integrity.

Applied Ethics

A branch of ethics that deals with ethical problems in various fields like medical, technical, legal, and business ethics.

Federal Statutes

Laws enacted by the United States Congress that apply throughout the country, forming part of the federal law.