(Solved):There have been significant discussions on the government’s fiscal policy during the Great Recession. In particular, many did not like the government’s actions in salvaging the auto industry in pro… View Answer…

 

Question

There have been significant discussions on the government’s fiscal policy during the Great Recession. In particular, many did not like the government’s actions in salvaging the auto industry in providing guaranteed loans to GM and Chrysler. What is your opinion? Provide economic reasons for your opinion. One point that was raised regarding salvaging any company, or industry for that matter, was the question of “moral hazard”. explain?

 

EXPERT ANSWER

The question of

Scroll to top