In Response to an Asset-Price Bubble,macroprudential Regulation Appears to Be

question 64

Multiple Choice

In response to an asset-price bubble,macroprudential regulation appears to be the right tool.What is macroprudential regulation?

• A) Increasing the federal funds rate across the macroeconomy
• B) The use of tax incentives to capture some of the gains from bubbles
• C) Regulatory policy to affect what is happening in credit markets in the aggregate
• D) None of the above is correct.

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Definitions:

Initial Direct Costs

Expenses directly associated with acquiring or originating a loan or insurance policy, which may include processing and sales commissions.

Revenue Recognized

The process of recording revenues in the financial statements when they are earned, which may not coincide with when the cash is received.

Collectibility

The likelihood or ability of a company to collect its accounts receivable from customers.

Sales Price

The amount of money for which a product or service is sold in the market.