10 pts | Question Help in their book This Time ts Different Camen Reinhart and K

Question

10 pts | Question Help in their book This Time ts Different Camen Reinhart and Kenneth Rogolf conclude severe Related to the M An examination of the prices, output, and employment shormath af severe postwar lnancial crises shows that they have had a dep and aeiting effct on aset Source Carmen M Reinhart and Kenneth S. Rogolf This Time is Dffrent Eight Centuries of Financial Folly Princeton Princeton University Press, 2009, p 248 O A. When inancial insitutions f O B. A recession that includes a financial crisis is generaly more complex and has more severe consequences a recession connected with a financial crisis be more severe than a recession that did not involve a inancial crisis? activity, can increase, further affecting real output decreasing asset prices and lending which affects the economy for a longer time ail, credit markets can be damaged, and the amount of borrowing, and hence economic such as period than a traditional recession ) C. Both And B are cored the above A recession connected with a financial crisis will be loss severe than a recession that did not involve a ck to select your answ

Explanation / Answer

the correct answe is option b)

Financial crisis recession is always severe and for long term than traditional recession. It is because credit market is hampered, there is no lending and asset price decreases. The consumer confidence is very low . private consumption grows very slowly.private investment continues to decline after the recession trough.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.