4x During the global financial crisis of 2007-2008 some major financial companies such as Goldman Sachs and JPMorgan Chase-wore in danger of going out of business. As a result, governments around the world- particularly in the United States-offered stimulus plans and economic aid to keep these companies solvent and operating. Which statement BEST describes the federal government's reasoning behind providing these companies with bailout money to koop them afloat? A The stimulus was vital in keeping the national economy vibrant during the ongoing "War on Terror:" B The multinational corporations were considered to be "too big to fail" because their downfall would cause a greater economic collapso." C Even though the multinational corporations were based outside of the United States providing them aid would greatly improve the U.S. economy. D It was a precedent set during the Great Depression nearly a century earlier, so to not provide assistance would be a violation of U.S. economic policy.

Question

4x During the global financial crisis of 2007-2008 some major financial companies such as Goldman Sachs and JPMorgan Chase-wore in danger of going out of business. As a result, governments around the world- particularly in the United States-offered stimulus plans and economic aid to keep these companies solvent and operating. Which statement BEST describes the federal government's reasoning behind providing these companies with bailout money to koop them afloat? A The stimulus was vital in keeping the national economy vibrant during the ongoing "War on Terror:" B The multinational corporations were considered to be "too big to fail" because their downfall would cause a greater economic collapso." C Even though the multinational corporations were based outside of the United States providing them aid would greatly improve the U.S. economy. D It was a precedent set during the Great Depression nearly a century earlier, so to not provide assistance would be a violation of U.S. economic policy.

Answer 1

## Step 1The problem is a multiple-choice question that requires understanding of the economic crisis of 2007-2008 and the government's response to it. The question asks us to identify the best reason behind the government's decision to provide bailout money to major financial companies such as Goldman Sachs and JPMorgan Chase.## Step 2The options provided are:A. The stimulus was vital in keeping the national economy vibrant during the ongoing "War on Terror."B. The multinational corporations were considered to be "too big to fail" because their downfall would cause a greater economic collapse."C. Even though the multinational corporations were based outside of the United States providing them aid would greatly improve the U.S. economy.D. It was a precedent set during the Great Depression nearly a century earlier, so to not provide assistance would be a violation of U.S. economic policy.## Step 3Option A is not directly related to the economic crisis of 2007-2008. The "War on Terror" is a political and military conflict, not an economic one.## Step 4Option B is the most accurate description of the government's reasoning. The term "too big to fail" refers to companies that are so large and interconnected that their failure would cause a significant economic collapse. This was the case with Goldman Sachs and JPMorgan Chase, whose failure could have led to a global economic crisis.## Step 5Option C is not accurate because the multinational corporations were not based outside of the United States. They were American companies, and their failure would have had a direct impact on the U.S. economy.## Step 6Option D is not accurate because the government's decision to provide bailout money was not based on a precedent set during the Great Depression. The Great Depression was a different economic crisis that occurred nearly a century earlier, and the government's response to it was not the same as the response to the 2007-2008 crisis.

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