Economists Who Believe That Policy Errors Are the Source of Economic

question 74

Multiple Choice

Economists who believe that policy errors are the source of economic instability argue that the crisis of 2008 was primarily the result of

• A) housing regulations that undermined sound lending practices and Fed policies that generated the housing boom and bust.
• B) the stock market crash.
• C) the actions of speculators who drove up the world price of oil, the domestic price of gasoline, and other energy sources.
• D) persistently high interest rates during the decade leading up to the crisis.

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Definitions:

Behavioral Therapy

A type of psychotherapy that focuses on changing negative behaviors into positive ones through conditioning and reinforcement.

Schema Focused Psychotherapy

A form of psychotherapy that blends cognitive-behavioral, experiential, interpersonal, and psychoanalytic techniques to change deep-seated patterns in thinking and behavior.

Psychodynamic Therapy

A therapeutic approach that emphasizes understanding the unconscious processes as they are manifested in a person's present behavior, with roots in Freudian psychoanalysis.

Cognitive Therapy

A type of psychotherapy aimed at changing negative patterns of thinking, to alter unwanted behavior patterns and treat mood disorders.