Business, 09.11.2019 03:31 edjiejwi

There is disagreement among economists over whether the "wealth effect" or a "debt overhang" is the primary reason that financial disasters lead to recessions. each explanation suggests that a different government policy should be followed. if the wealth effect causes financial crises to lead to recessions, then policy makers should concentrate on choose one: a. more thoroughly regulating banks. b. stopping households from borrowing so much. c. decreasing infrastructure spending at the beginning of the recession. d. keeping asset bubbles from becoming too large.

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