In 2008, the U.S. government took an 80 percent stake in AIG to stop that financial institution from collapsing, the theory being that if AIG did collapse, it would have very serious consequences for the entire financial system. What type of economy is this an example of?

A) MixedB) CommandC) CapitalisticD) Market

Question

03-12-2019
Business

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In 2008, the U.S. government took an 80 percent stake in AIG to stop that financial institution from collapsing, the theory being that if AIG did collapse, it would have very serious consequences for the entire financial system. What type of economy is this an example of?

A) MixedB) CommandC) CapitalisticD) Market

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Numenius Numenius · Answer 1 · 2019-12-05T12:00:36+01:00

Answer: (A) Mixed economy

Explanation:

Mixed economy is one of the type of economy which helps in protect the private property and also allow the economical level for using the capital.

The mixed economy also allow the government for interfering in various economical activity for achieving the process of decisions making.

All the modern type of economy is basically refers to the mixed economy as the production are basically shared between the two main sectors that is private and public.

Therefore, Option (A) is correct.