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Indicate whether the statement is true, false, or unclear, and justify your answer. One of the major predictions of the Rothschild-Stiglitz model is a positive

Indicate whether the statement is true, false, or unclear, and justify your answer. One of the major predictions of the Rothschild-Stiglitz model is a positive correlation between risk and insurance coverage. This has never been observed in practice due to the confounding influence of moral hazard

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