Policies to Reduce the Likelihood of Financial Crises Might Include

question 14

Multiple Choice

Policies to reduce the likelihood of financial crises might include ________.

• A)enlarging government budget deficits
• B)reducing imbalances in global trade and capital flows
• C)keeping the inflation rate near or below zero
• D)more aggressive use of stabilization policy
• E)all of the above

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Definitions:

Behavior

The actions or reactions of an individual or system in response to external or internal stimuli.

Normative Economic Statement

An opinion or judgment about what ought to be in economics, reflecting subjective statements of value.

Incomes

The financial earnings received by individuals or entities, including wages, salaries, and profits.

National Production

The total value of all goods and services produced within a country's borders over a given time period.