Empirical Evidence Points to the Fact That Financial Crises

question 57

Multiple Choice

Empirical evidence points to the fact that financial crises:

• A) are newsworthy but have no impact on economic growth.
• B) have a negative impact on economic growth only for the year of the crisis.
• C) have a negative impact on economic growth for years.
• D) can have a positive impact on economic growth as weak borrowers are weeded out.

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Definitions:

Neurotic Trends

Patterns of behavior and thought that are considered to be unhealthy psychological responses to stress or conflict, often leading to anxiety or other mental health issues.

Reinforcement

A concept in behavioral psychology where behavior is strengthened or weakened by the consequences that follow.

Punishment

The application of an undesirable stimulus or removal of a desirable one following a behavior, with the aim of decreasing that behavior's occurrence.

Freudian Theory

A set of psychoanalytic theories developed by Sigmund Freud, focusing on unconscious motives, conflicts, and childhood experiences as determinants of personality and behavior.