What role do almost all economists agree the central bank has in a financial crisis?
A) Contractionary fiscal policy to reduce leverage
B) Lender of last resort
C) Expansionary fiscal policy to reduce herding
D) No role
Correct Answer:
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Q15: The following is an example of the
Q16: Why are financial-sector crises scarier than collapses
Q17: Leveraging can encourage herding behavior.
Q18: According to structural stagnationists there is an
Q19: An important role of central banks during
Q21: Mortgage-backed securities are financial instruments:
A)that are highly
Q22: Potential homebuyers expect house prices to continue
Q23: Asset price bubbles are not sustainable because:
A)people
Q24: Suppose the people in my town hear
Q25: When there are unsustainable rapidly rising prices
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