Regulatory forbearance
A) meant delaying the closing of "zombie S&Ls" as their losses mounted during the 1980s.
B) had the advantage of benefiting healthy S&Ls at the expense of "zombie S&Ls," as insolvent institutions lost deposits to health institutions.
C) had the advantage of permitting many insolvent S&Ls the opportunity to return to profitability, saving the FSLIC billions of dollars.
D) increased adverse selection dramatically.
A
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The U.S. is probably the most open international market among the industrialized countries. What then does the U.S. have to gain by joining the WTO?
What will be an ideal response?
If investment in capital equipment requires two to three years between conceptualization and start-up to production, then
A) the gap between the desired capital stock and the existing capital stocks is closed slowly. B) a change in expected sales will not increase output. C) V* will be smaller than expected. D) All of the above are correct.