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Describe, using examples, three explanations for why we might follow rules that identify very delayed consequences.
Recession
A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
Banking Crisis
A financial situation where banks face significant liquidity or solvency issues, leading to a lack of confidence and potential failure or government intervention.
Subprime Mortgages
Loans offered to individuals with poor credit scores at higher interest rates than conventional mortgages, contributing to the 2008 financial crisis.
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