2. Why is the originate-to-distribute business model subject to the principal-agent problem? (10 points) Note: Answer with not less than in 200 words 3. How does a deterioration in balance sheets of financial institutions and the simultaneous failures of these institutions cause a decline in economic activity? (10 points) Note: Describe in not less than in 150 words 4. Carefully define what credit spreads are and explain why they rise significantly during a financial crisis. (10 points) Note: Describe in not less than in 150 words