In the older 22nd edition of our Macroeconomic textbook, it mentioned the term "moral hazard." What does this term mean? (Correct Answer: B - Thanks Mr. Torres). Multiple Choice O This means that the U.S. government has a moral duty and reponsibility to always bailout failing U.S. financial institutions. If they dont', then they are being immoral. This is a slippery slope. If the government actually does bailout failing U.S. financial institutions, then theses financial institutions might be more reckless in the future and take more unnecessary risk because they know the government will be there to save them the next time they fail. O This term promotes the idea that "greed is good and that greed is right." It is greed that pushed humanity forward and creates progress. Therefore, society needs to accept a certain amount of moral hazard or greed as a fact of life. O It means "cill out" or "don't worry be happy