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T or F: Suppose there is a separating equilibrium in the Rothschild-Stiglitz model. If everyone becomes more risk averse, this can cause the equilibrium to

T or F: Suppose there is a separating equilibrium in the Rothschild-Stiglitz model. If everyone becomes more risk averse, this can cause the equilibrium to collapse. Can I please get a more indepth answer so I can understand :D

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