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sweetapple718 sweetapple718
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The concept of moral hazard was publicly discussed in the context of the 2007-2008 financial crisis because

▸ it was feared that the U.S. government was taking advantage of its special knowledge in the financial markets.

▸ it was feared that government bailouts of financial institutions would reduce competition in financial markets.

▸ it was argued that the U.S. government should invoke moral hazard to sustain the financial sector.

▸ it was feared that government bailouts of financial institutions would encourage the institutions to continue their risky behaviour.

▸ it was claimed that moral hazard was necessary to prevent large U.S. financial institutions from going bankrupt.
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Microeconomics

Microeconomics


Edition: 17th
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chevy87chevy87
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sweetapple718 Author
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A year ago
Helped a lot
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Thanks
acaruso
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You make an excellent tutor!
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