Question: QUESTION 2 [5 Marks] Discuss how a contract design, which uses the multi-period borrower-lender relationship, avoids the under-investment problem. Be specific and focus on what

QUESTION 2 [5 Marks] Discuss how a contract design, which uses the multi-period borrower-lender relationship, avoids the under-investment problem. Be specific and focus on what was presented in the course

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