Suppose that Antonio, an economist from an AM talk radio program, and Caroline, an economist from a school of industrial relations, are arguing over government bailouts. The following dialogue shows an excerpt from their debate: Caroline: Thanks to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. Antonio: Indeed, it's gotten crazy! A government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. Caroline: I don't know about that. Without a bailout of severely distressed financial firms, the economy will experience a deep recession.

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