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Explain the two different types of financial crisis

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Reference no: EM132461093

a) Explain the two different types of financial crisis.

b) What implications do these have for which arm of the government should respond to the crisis.

c) Which type of financial crisis occurred in the UK in 2007-8?

d) What implications does this have for the UK government's deficit?

e) According to the Permanent Income Hypothesis, what might be the effect of increased loans to students? Would this be different from increased grants to students?

f) How do changes in interest rates affect the real economy?

Reference no: EM132461093

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