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The Most Important Loss to the Economy During the 1980s

Question 65

Multiple Choice

The most important loss to the economy during the 1980s from the thrift crisis was


A) the loss of output represented by the $200 billion spent to pay off depositors of failed thrifts.
B) the increase in funds spent to hire more regulators.
C) the diversion of savings to less productive investments funded by insured deposits.
D) the increase in deposit insurance premiums mandated by new legislation.

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