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24 March, 01:21

The following is an example of the moral-hazard problem: Homebuyers do not properly evaluate the risks involved in buying a home, because they are assuming the government will bail them out of a bad mortgage as it has done before. 1. True2. False

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  1. 24 March, 02:54
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    The answer is true, homeowners do not properly evaluate the risks involved in buying a home, because they assume that the government will bail them out of a bad mortgage as it has been done before.
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