2. After the 2008 Global Financial Crisis (GFC) the Central Bank
of the United States and the federal government both attempted to
stimulate the economy.
a. What caused the GDC and what fiscal policy actions can the
federal government take to stimulate the economy? Be sure to define
the key terms and the macro models you used to explain the
outcomes.
b. Explain what actions the Central Bank took to stimulate the
economy. Again, be sure to define key terms...
2. After the 2008 Global Financial Crisis (GFC) the Central Bank
of the United States and the federal government using fiscal
policies both attempted to stimulate the economy.
a. What caused the GFC and what fiscal policy actions did the
federal government take to stimulate the economy over the next 15
years? Be sure to define the key terms and the macro models you
used to explain the outcomes.
b. Explain what actions the Central Bank took to stimulate the...
How did the practice of mortgage securitization contribute to
the onset of the 2008 Financial Crisis? Briefly explain (1) what
"mortgage securitization" means, (2) why this practice first
developed, and (3) why the practice became problematic in the
decade prior to the crisis.
18. The financial crisis of 2007 began in the United States with
the subprime crisis, but this domestic crisis quickly spread beyond
the US. Describe (don’t just list) the FOUR reasons presented for
why this crisis became global, in other words the four reasons for
the rapid international contagion of the subprime crisis.