While the financial crisis was devastating in many ways, your textbook author says the worst consequence is:
A) low levels of output and high unemployment that could linger for several years.
B) the inability of banks to borrow.
C) the difficulty of conducting monetary policy in an era of increased regulation.
D) some of the European peripherals had to come to the rescue of the United States.

Question

Quizplus · Accepted Answer

The low levels of output and high unemployment that could linger for several years are the worst consequence of the financial crisis because they have long-lasting impacts on individuals, families, and the economy as a whole. The inability of banks to borrow and the difficulty of conducting monetary policy in an era of increased regulation are significant challenges, but they can be addressed with policy interventions. The idea that the European peripherals had to come to the rescue of the United States is not accurate as the crisis originated in the United States and affected the global economy.

While the Financial Crisis Was Devastating in Many Ways, Your