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Paul Firobind (260929844) ECON 319 - Economic Crisis : Assignment #6 1. Use an economic model that we covered in class, either a game or an individual choice under risk model, to model and explain the following in the run up to the 2008 financial crisis in the US. Use the simplest model you can to illustrate, and the solution to your model must be consistent with behavior at that time: 1) The moral hazard induced by implicit government insurance for an investor purchasing a GSE MSB (individual choice).

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