The S&L Crisis Can Be Analyzed as a Principal-Agent Problem

question 52

Multiple Choice

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

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Definitions:

Natural

Referring to phenomena or characteristics that exist or happen independently of human intervention.

Homosexuality

A sexual orientation characterized by a romantic or sexual attraction to individuals of the same sex.

Heterosexuality

is the sexual attraction or orientation toward individuals of the opposite sex.

Dr. Krafft-Ebing

A 19th-century Austrian psychiatrist and author known for his work in human sexuality, notably the book "Psychopathia Sexualis."