One possible role for government is to intervene to prevent the failure of large financial institutions and thereby prevent instability in the financial markets. Indeed, during 2008 the federal government intervened in several ways by loaning or investing funds to help some of these financial institutions.

Question

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This statement is true. During the 2008 financial crisis, the US government intervened to prevent the failure of several large financial institutions, including loaning or investing funds to stabilize the markets.

One Possible Role for Government Is to Intervene to Prevent