Question: Please answer correct explain plz asap option correct Don't answer by pen paper plz Match: Perverse incentives that encourage risky behavior by people who don't

Please answer correct explain plz asap option correct

Don't answer by pen paper plz

Please answer correct explain plz asap option correctDon't answer by pen paperplz Match: Perverse incentives that encourage risky behavior by people who don't

Match: Perverse incentives that encourage risky behavior by people who don't actually bare the risk The era discussed in lecture characterized by a large middle class and traditional Keynesian policy The implicit policy that v holds that financial 1. Too Big to Fail institutions can become so large that their failure 2. Mortgage-backed Security would not be tolerable from a policy standpoint 3. Credit default swap A policy regime in which v 4. Moral hazard aggregate spending (AD) is supported through 5. The Golden Age of Capitalism household debt in connection with an 6. Privatized Keynesianism expanded and increasingly complex financial sectorlarge that their failure 2. Mortgage-backed Security 3 would not be tolerable from a policy standpoint 3. Credit default swap A policy regime in which 4. Moral hazard aggregate spending (AD) is supported through 5. The Golden Age of Capitalism household debt in connection with an 6. Privatized Keynesianism expanded and increasingly complex financial sector Essentially an insurance policy against defaults on other financial derivatives Composed of a bundle of home loans issued by independent banks and pooled into one asset

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