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Savings and loan associations (S&Ls) in the early 1980s experienced a phenomena economists call the ___________, in which compensation for a loss, such as fire
Savings and loan associations (S&Ls) in the early 1980s experienced a phenomena economists call the ___________, in which compensation for a loss, such as fire insurance, creates incentives to have more losses. As a result, financial institutions make riskier investments with the assurance losses will be covered by the government
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