The following table contains statements that provide some analysis of policies that address the financial crisis of 2007-2009. Categorize each statement as positive or normative. Statement The financial crisis was caused by faulty mathematical models that encouraged excessive risk taking. The lack of effective regulation contributed to a risk-seeking culture in the financial services industry. Central banks should have imposed tighter regulations on banks to prevent the financial crisis. Executives of banks that received financial assistance from the government should not have received bonuses. Positive Normative O O

The following table contains statements that provide some analysis of policies that address the financial crisis of 2007-2009. Categorize each statement as positive or normative. Statement The financial crisis was caused by faulty mathematical models that encouraged excessive risk taking. The lack of effective regulation contributed to a risk-seeking culture in the financial services industry. Central banks should have imposed tighter regulations on banks to prevent the financial crisis. Executives of banks that received financial assistance from the government should not have received bonuses. Positive Normative O O

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Savings,investment And The Financial System

Section: Chapter Questions

Problem 1QR

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