This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain the forces that caused the savings and loan debacle in the latter half of the 1980s. What ... (Read 45 times)

sarasara

  • Hero Member
  • *****
  • Posts: 521
on: Jun 29, 2018
Explain the forces that caused the savings and loan debacle in the latter half of the 1980s.
 
  What will be an ideal response?

Question 2

Suppose that in 2012, real GDP is larger than nominal GDP. The GDP price index in 2012 is definitely
 
  A) less than 100.
  B) larger than the GDP price index in 2012.
  C) greater than 100.
  D) negative.
  E) less than the GDP price index in 2012.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

DylanD1323

  • Sr. Member
  • ****
  • Posts: 314
Reply #1 on: Jun 29, 2018
Answer to Question 1

Deposit insurance created a moral hazard problem in which savings institutions had an incentive to make riskier loans than they would have made in the absence of deposit insurance. In addition, because their deposits were federally insured, depositors of savings institutions had less incentive to monitor the risks incurred by the managers. As a result, the institutions extended large amounts of high-risk loans, many of which generated losses that resulted in failures by numerous institutions.

Answer to Question 2

A


sarasara

  • Member
  • Posts: 521
Reply 2 on: Jun 29, 2018
Wow, this really help

pangili4

  • Member
  • Posts: 346
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

European Rabbit in Shropshire, England, infected with myxomatosis, a disease caused by the Myxoma vi European Rabbit in Shropshire, England, infected with myxomatosis, a disease caused by the Myxoma vi
Historian James Merrell notes several errors in Benjamin West’s famous 1771 painting, William Penn’s Historian James Merrell notes several errors in Benjamin West’s famous 1771 painting, William Penn’s
A pharmacist can explain to a patient why medication may look different and ensure the correct ... A pharmacist can explain to a patient why medication may look different and ensure the correct ...
A mere one-half percent of Americans owns over a quarter of the entire nation’s wealth. Very few ... A mere one-half percent of Americans owns over a quarter of the entire nation’s wealth. Very few ...
Half Leg of Lamb Half Leg of Lamb
Crown gall disease caused by Agrobacterium via plant transformation Crown gall disease caused by Agrobacterium via plant transformation
Video: Regulation of GFR: three methods, autoregulation & autoregulation via myogenic mechanism

For a complete list of videos, visit our video library