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7. Governments provide incentives or threaten banks to make bad loans for political ends. This is...

7. Governments provide incentives or threaten banks to make bad loans for political ends. This is

called “__________.”

A) classical capitalism

B) mercantilism

C) crony capitalism

D) market socialism

business   economics   
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Answer #1

Answer:

Correct option: C) crony capitalism

Governments provide incentives or threaten banks to make bad loans for political ends. This is called crony capitalism.

Explanation:

An economy that is nominally free-market, but allows for preferential regulation and other favorable government intervention based on personal relationships. In such a system, the false appearance of "pure" capitalism is publicly maintained to preserve the exclusive influence of well-connected individuals. This is what crony capitalism is.

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