Lessons That Economists and Policy Makers Have Learned from the Recent

question 75

Multiple Choice

Lessons that economists and policy makers have learned from the recent global financial crisis include

• A)Developments in the financial sector have a far greater impact on economic activity than was earlier realized.
• B)The zero lower bound on interest rates can be a serious problem.
• C)The cost of cleaning up after a financial crisis is very high.
• D)Price and output stability do not ensure financial stability.
• E)All of the above.

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Definitions:

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end consumer.