Discuss the policy response by the federal government to the recent financial crisis
What will be an ideal response?
Answer: An ideal response will:
1. Note that the response had two parts, which included the federal bailout of banks and the financial industry (the Emergency Economic Stabilization Act, which included the Troubled Assets Relief Program) and the stimulus package (the American Recovery and Reinvestment Act).
2. Illustrate that the response contained aspects of monetary policy (keeping interest at near zero) as well as fiscal policy (using government spending increases and tax cuts to address unemployment).
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Proponents of widespread proliferation
a. make an exception in the case of Iran. b. think nuclear deterrence will eventually fail. c. think the leaders of Iran are basically rational. d. do not think nuclear weapons had anything to do with the peace of the Cold War.
What is (are) the expected outcome (outcomes) of the game?
A. Increased free trade.
B. lost jobs in European Union (EU), increased revenue for United States.
C. increased revenue in EU, lost jobs in the United States
D. trade war
E. can’t say because there was no Nash equilibrium