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2. This chapter discusses how an understanding of adverse selection and moral hazard can help us better understand financial crises. The greatest financial crisis faced by the United States was the Great Depression, from 1929 to 1933. Go to http:// This site contains a brief discussion of the factors that led to the Great Depression. Write a one-page summary explaining how adverse selection and moral hazard contributed to the Great Depression.

As we know the American people mostly the youngsters are facing a great problem ofdepression. The possible causes could be the fast life and the fluctuations or instability of thehappenings in…

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