Economists Believe That the Way That Policymakers Handled the Financial

question 72

Multiple Choice

Economists believe that the way that policymakers handled the financial crisis:

• A) reduces the probability of another financial crisis.
• B) will shrink the number of banks.
• C) increases moral hazard.
• D) will lead to less risk-taking by banks.
• E) bankrupted the federal government.

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Definitions:

Low-Income Developing

A term used to describe countries with lower levels of income and economic development in comparison to global averages.

Annual Per Capita Income

The average income earned per person in a given area in a specified year, calculated by dividing the area's total income by its population.

Democratic Republic

A form of government in which representatives elected by the people make and enforce laws and policies, but the head of state is usually a president.

Low-Income Developing

Refers to countries with low levels of income per capita, often characterized by limited economic development and facing challenges in poverty, health, and education.