All of the following are investment policies that most likely increase equilibri

Question

All of the following are investment policies that most likely increase equilibrium income/output except: A. a government policy that eases bank lending requirements. B. a government policy of merging troubled banks with sound banks to prevent bank failures that might interrupt the flow of credit. C. a government policy to insure bank deposits to avoid bank failures that interrupt the flow of credit. D. a government policy that strengthens bank accounting rules to crack down on troubled banks that have used creative accounting to avoid failure.

Explanation / Answer

D. a government policy that strengthens bank accounting rules to crack down on troubled banks that have used creative accounting to avoid failure.

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