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Some Would Argue That It Is Better to "Clean Up

Question 28

Multiple Choice

Some would argue that it is better to "clean up" the economic fallout after an asset bubble breaks than to interfere with markets beforehand. The economist Joseph Stiglitz argues that this is ill-advised because


A) financial markets will behave irrationally.
B) uncertainty makes such attempts impossible.
C) the attempt to do so immediately following the Great Recession was insufficient to the task.
D) the Federal Reserve lacks the necessary tools.

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