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A Good Example of Using the Discount Rate to Serve

Question 4

Multiple Choice

A good example of using the discount rate to serve the lender of last resort role for the financial system occurred during the


A) savings and loan crisis of the 1980s.
B) stock market crash of 1987.
C) sharp rise in government deficits during the 1980s.
D) developing-country debt crisis of the 1980s.

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