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Wells Fargo has got some problems. Suppose that in response to regulatory penalties (such as having their growth capped for 3 years) Wells Fargo decides to increase annual bonuses for their executives who were involved in systemic banking fraud (you know, like how they did last time). Using our model of consumption-leisure decisions, what is the likely effect of this policy on the consumption-leisure decisions of these executives? Show and discuss.
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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