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:

Bilateral Lobotomy

A surgical procedure that involves severing connections in the brain's prefrontal lobe, historically used to treat mental illness with often debilitating results.

Time Outs

A disciplinary technique used to remove an individual from an environment for a period of time as a consequence for unacceptable behavior, with the goal of decreasing that behavior.

Behavior Modification

The use of empirically demonstrated behavior change techniques to improve behavior, such as altering an individual's behaviors and reactions to stimuli.

Culturally Sensitive Therapy

An approach to therapy in which knowledge of clients’ cultural backgrounds guides the choice of therapeutic interventions.