Explain why the governments bailout of some banks in 2008 caused a moral hazard.

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Explain why the government’s bailout of some banks in 2008 caused a moral hazard.

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Economics

ISBN: 9781032046723

9th Edition

Authors: William Boyes, Michael Melvin

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Question Posted: Apr 23, 2024 08:32 AM

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Explain why the governments bailout of some banks in 2008 caused a moral hazard.

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The governments bailout of some banks in 2008 caused a moral hazard primarily because it created incentives for banks and financial institutions to en...View the full answer

Economics

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