Moral hazard arises when a principal is unable to control the actions of an agent, and these actions have differential value to the agent as compared to the principal.
Requirements: 2-page, APA format with at least 2 scholarly journal citations
Did the bailouts help or hurt the economy?
Do you support the idea of the government stepping in to help companies in trouble? Could this promote the moral hazard problem?
Fully explain and support your response.
