Taxpayers were served poorly by thrift regulators in the 1980s. This poor performance cannot be explained by
A) regulators' desire to escape blame for poor performance, leading to a perverse strategy of "bureaucratic gambling."
B) regulators' incentives to accede to pressures imposed by politicians, who sought to keep regulators from imposing tough regulations on institutions that were major campaign contributors.
C) Congress's dogged determination to protect taxpayers from the unsound banking practices of managers at many of the nation's savings and loans.
D) politicians strong incentives to act in their own interests rather than the interests of the taxpayers.
C
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The consumption bundle that maximizes a consumer's satisfaction given his income is located:
A) at the point of tangency of the consumer's demand curve and indifference curve. B) at any point of intersection of the consumer's demand curve and indifference curves. C) at the point of tangency of the consumer's budget constraint and indifference curve. D) at any point of intersection of the consumer's demand curve and indifference curves.
Expansionary monetary policy refers to the ________ to increase real GDP
A) government's increasing spending and lowering taxes B) government's decreasing spending and raising taxes C) Federal Reserve's increasing the money supply and decreasing interest rates D) Federal Reserve's decreasing the money supply and increasing interest rates