Which of the following would not increase the possibility of a financial crisis?
A)a sharp unexpected increase in interest rates
B)unanticipated random bankruptcies
C)stable long-term interest rates
D)unanticipated decreases in the overall price level

Question

Quizplus · Accepted Answer

Stable long-term interest rates provide certainty and predictability to investors, which reduces the likelihood of financial crises. The other options either increase uncertainty or directly impact the financial health of individuals or businesses.

Which of the Following Would Not Increase the Possibility of a Financial