B.Sometimes in order to stimulate more consumer and business spending, the Federal Reserve will engage in expansionary monetary policy, and the federal government will compel banks to relax their lending standards for a time to entice individuals and business organizations to take out more loans than they would do under more restrictive standards.This was done in the early-mid 2000s, which led to a housing bubble that ultimately collapsed and played a significant role in bringing about the Recession of 2007-2009.

1.Is the relaxing of bank lending standards to bring about more loans a wise policy to implementfromtime-to-time, or is the risk to the overall economy too great to makeuse of such a policy?Explain in detail whyor why not.