Possible Explanations That Have Been Offered for the Great Moderation

question 26

Multiple Choice

Possible explanations that have been offered for the Great Moderation experienced in the United States include all of the following except:

• A) good fortune.
• B) economies that have become more flexible in absorbing shocks.
• C) calm financial markets.
• D) better understanding and use of monetary policy.

---

Definitions:

Hippocampus

A region of the brain involved in the formation of new memories and is associated with learning and emotions.

Hypothalamus

A region of the brain beneath the thalamus, responsible for regulating many bodily functions, including hunger, thirst, emotions, and the body's circadian rhythms.

Neural Imaging Technology

Neural Imaging Technology involves the use of various techniques to directly or indirectly image the structure, function/pharmacology of the nervous system.

Outside Interference

Outside interference refers to any external factor or influence that disrupts or changes the course of an event, process, or system.