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The government has bailed out homeowners who are in danger of foreclosure. Furthermore, future homeowners may deduce that the government will again bail them out in the case of future economic turmoil. The government inadvertently has created what is known as: Multiple Choice moral hazard. deleveraging. herding. the law of diminishing control.
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The government has bailed out homeowners who are in danger of foreclosure. Furthermore, future homeo...
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