In order for the government to collect taxes, the government must first establish a(n)

The S&L Crisis can be analyzed as a principal-agent problem. The agents in this case, the ________, did not have the same incentive to minimize cost to the economy as the principals, the ________

A) politicians/regulators; taxpayers B) taxpayers; politician/regulators C) taxpayers; bank managers D) bank managers; politicians/regulators

If banks are fully loaned out, have no excess reserves, and the legal reserve requirement is raised, the amount that banks can lend is

a. reduced and the money supply contracts b. reduced and the money supply expands c. reduced and there is no change in the money supply d. increased and the money supply expands e. increased and the money supply contracts