What are adverse selection and moral hazard? What causes them?

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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

Question Posted: Feb 04, 2016 06:37 AM

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What are adverse selection and moral hazard? What causes them?

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Adverse selection refers to the situation where one party to a transaction takes advantag...View the full answer

Macroeconomics

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