Author Question: The financial crisis of 2007-2008 illustrated how important the integration of international ... (Read 99 times)

pane00 · **on:** Jun 30, 2018

The financial crisis of 2007-2008 illustrated how important the integration of international financial markets could be in contributing to the spread of financial problems from one country to another. What solution is cited to curb the spread of financial problems from one country to another?
a. Better regulation of financial institutions to ensure prudent risk taking
b. Lowering the fiscal budget
c. Reducing international investment
d. Paying off debts from the Federal Reserve
e. Mitigating lack of government transparency

Question 2

If the production of a particular good involves significant external benefits, to force the externality to be internalized the government might:
a. impose a tax on production of the good in order to increase production.
b. impose a tax on production of the good in order to decrease production.
c. offer a subsidy for production of the good in order to increase production.
d. offer a subsidy for production of the good in order to decrease production.