Policies to Reduce the Likelihood of Financial Crises Might Include

question 14

Multiple Choice

Policies to reduce the likelihood of financial crises might include ________.

• A)enlarging government budget deficits
• B)reducing imbalances in global trade and capital flows
• C)keeping the inflation rate near or below zero
• D)more aggressive use of stabilization policy
• E)all of the above

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Definitions:

Joint

A fracture in a rock where the rock has been pulled apart slightly without significant displacement parallel to the fracture.

Anticlines

Upward folds or arches of rock layers, often associated with oil and natural gas deposits.

Synclines

Geological folds that dip towards each other from opposite sides, often forming a trough-like structure.

Joints

Natural fractures or separations in rocks that occur without the rock moving apart.