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After obtaining government loan guarantees, lenders start making loans to shady, high-risk firms because they know that the government will have to pay back the

After obtaining government loan guarantees, lenders start making loans to shady, high-risk firms because they know that the government will have to pay back the loans if the firms go bankrupt. This is an example of Multiple Choice a producer surplus. moral hazard. both A and B. neither A nor B

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