Response to regulatory penalties

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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.

Reference no: EM133269002

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