Deregulation in the Financial Services Sector in the Early 1980s​

question 4

Multiple Choice

Deregulation in the financial services sector in the early 1980s​

• A)​was not widely supported by economists.
• B)​led to the creation of just a few new financial products.
• C)​led to risky practices and problems in the savings and loan industry.
• D)​triggered the 1987 stock market crash.
• E)all of these choices.

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Definitions:

Price

The monetary worth anticipated, necessitated, or provided in compensation for an item.

Equivalent Variation

A measure in economics that captures the change in income needed to reach a utility level after a price change, keeping welfare constant.

Utility Function

A mathematical model used in economics to represent a consumer's preference ranking for different bundles of goods, showing satisfaction levels.

Consumption

The act of using goods and services to satisfy needs or wants.