Question

In our balloon analogy, a hole in the balloon represents.:

	a.	a hole in the balloon.
	b.	financial crisis.
	c.	the thickness of the skin.
	d.	fiscal policy.

Answer 1

As we take an example ballon which has air inside it. As there is more and more air which means expanding of it and trying to reach its full size but as sudden if someone pricked a needle then sudden burst sound came out of it and the whole balloon burst and become shapeless

The same goes for the economy. When an economy is going very well and developing at a very faster pace but sometimes suddenly due to some factors (may be external or internal like deflation) causes sudden fall of the economy and we call it as the financial crisis

The best example is of what happened in one of the biggest financial crisis in the year 2008.

So the answer is option B.