Question

question 9 of 10

which scandal occurred as a result of ronald reagans deregulation efforts?

a. large superfund grants were misspent on republican campaigns.
b. many americans lost their savings when savings and loan institutions failed.
c. over 1,000 missiles were sold to iran through israel.
d. the fairness doctrine was ruled unconstitutional by the supreme court.

Explanation:

Analyze the question prompt

The question asks which scandal or negative outcome occurred as a direct result of President Ronald Reagan's deregulation efforts.

Evaluate the options

Using the Deregulation knowledge point:

• Option A refers to mismanagement of the EPA's Superfund, which was a controversy but not the primary systemic financial scandal linked to broad economic deregulation.
• Option B refers to the Savings and Loan (S&L) crisis. During the Reagan administration, deregulation of S&L associations allowed them to make highly risky investments, leading to widespread failures and loss of savings, requiring a massive federal bailout.
• Option C refers to the Iran-Contra Affair, which was a foreign policy scandal, not a result of domestic economic deregulation.
• Option D refers to the FCC's elimination of the Fairness Doctrine, which was an administrative policy change, not a Supreme Court ruling declaring it unconstitutional.

Connect deregulation to financial failure

Under Reagan's economic policies, the Garn-St. Germain Depository Institutions Act of 1982 deregulated savings and loan associations. This allowed these institutions to engage in high-risk real estate lending and investment activities, ultimately leading to the Savings and Loan Crisis of the late 1980s.

Answer:

• (A) Large Superfund grants were misspent on Republican campaigns.
• (B) Many Americans lost their savings when savings and loan institutions failed. (Correct answer)
• (C) Over 1,000 missiles were sold to Iran through Israel.
• (D) The fairness doctrine was ruled unconstitutional by the Supreme Court.