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.