Following the collapse of its housing and stock markets around 1990, the Japanese government ________.
A) effectively managed the crisis, limiting the damage to the Japanese economy
B) took only limited action in response to the crisis
C) was able to rely on private initiatives in quickly reversing the course of GDP in the 1990s
D) fixed the value of the yen to the Euro and pursued an aggressive monetary policy
Question 2
The belief that the regulators of the U.S. financial system would not tolerate any losses by depositors at large depository institutions is called
A) the too-big-to-fail doctrine.
B) the regulatory capture hypothesis.
C) the lender of last-resort doctrine.
D) corporate banking system welfare.
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