Why politicians aided the efforts of thrift regulators, raising regulatory appropriations and...

1) An analysis of the political economy of the savings and loan crisis helps one to understand

A) why politicians aided the efforts of thrift regulators, raising regulatory appropriations and encouraging closing of insolvent thrifts.

B) why thrift regulators were so quick to inform Congress of the problems that existed in the thrift industry.

C) why thrift regulators willingly acceded to pressures placed upon them by members of Congress.

D) why politicians listened so closely to the taxpayers they represented.

2) Taxpayers were served poorly by thrift regulators in the 1980s. This poor performance cannot be explained by

A) regulators\" desire to escape blame for poor performance, leading to a perverse strategy of \"bureaucratic gambling.\"

B) regulators\" incentives to accede to pressures imposed by politicians, who sought to keep regulators from imposing tough regulations on institutions that were major campaign contributors.

C) Congress\"s dogged determination to protect taxpayers from the unsound banking practices of managers at many of the nations savings and loans.

D) politicians strong incentives to act in their own interests rather than the interests of the taxpayers.