Some Would Argue That It Is Better to "Clean Up

question 21

Multiple Choice

Some would argue that it is better to "clean up" the economic fallout after an asset bubble breaks than to interfere with markets beforehand. The economist Joseph Stiglitz argues that this is ill-advised because

• A)financial markets will behave irrationally.
• B)uncertainty makes such attempts impossible.
• C)the attempt to do so immediately following the Great Recession was insufficient to the task.
• D)the Federal Reserve lacks the necessary tools.

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Definitions:

Internet

An international computer network offering extensive information and communication services.

E-Mail

A method of sending messages electronically from one user to another via the internet.

Money Laundering

Falsely reporting income that has been obtained through criminal activity, such as illegal drug transactions, as income obtained through a legitimate business enterprise, to make the "dirty" money "clean."

Criminal Activity

Conduct that violates the law and is punishable by sanctions such as fines, imprisonment, or other penalties.