1. Use an economic model, either a game or an individual choice under risk model, to model and explain the following in the run up to the 2008 financial crisis in the US. Use the simplest model you can to illustrate, and the solution to your model must be consistent with behavior at that time: a. The moral hazard induced by implicit government insurance for an investor purchasing a GSE MSB (individual choice). b. The moral hazard and false beliefs induced by CDS insurance for an investor purchasing an investment bank subprime MSB (individual choice two models, one that is consistent with beliefs held by investors at the time and one consistent with objective beliefs). c. The effect of the relatively small mortgage industry on the entire US banking system in the 2008 economic crisis (game)