Which of the following is a real outcome of the Global Financial Crisis?

The correct answer reflects the significant turmoil experienced in financial markets during the Global Financial Crisis (GFC). This crisis, which erupted in 2007-2008, was marked by a severe loss of confidence among investors, leading to drastic fluctuations in stock prices, exchange rates, and asset values. The extreme volatility was driven by a combination of factors, including the collapse of major financial institutions, widespread foreclosures, and a dramatic tightening of credit conditions.

During the GFC, many investors reacted to uncertainty by rapidly buying and selling assets, which caused market prices to swing sharply in both directions. This volatility was evident in stock market indices around the globe and had lasting impacts on global economic stability.

In contrast, stability in financial markets contradicts the fundamental nature of the GFC, which was characterized by instability. Increased government spending without consequences and rapid economic growth also do not align with the aftermath of the GFC; in reality, governments faced significant constraints due to rising debts and deficits as they struggled to stabilize their economies. Thus, extreme volatility is the most accurate real outcome of the Global Financial Crisis.