All of the following are investment policies that most likely increase equilibri
ID: 1220998 • Letter: A
Question
All of the following are investment policies that most likely increase equilibrium income/output except: A. a government policy that eases bank lending requirements. B. a government policy of merging troubled banks with sound banks to prevent bank failures that might interrupt the flow of credit. C. a government policy to insure bank deposits to avoid bank failures that interrupt the flow of credit. D. a government policy that strengthens bank accounting rules to crack down on troubled banks that have used creative accounting to avoid failure.
Explanation / Answer
D. a government policy that strengthens bank accounting rules to crack down on troubled banks that have used creative accounting to avoid failure.