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Business, 24.03.2020 17:54 angellinelittle

Identify the following situation currently faced by the World Bank as adverse selection or moral hazard.
The World Bank has extended loans to the government of a developing country to finance construction. of a canal with a certain future flow of earnings. Now, however, the government has decided to redirect those funds to build a casino that may or may not generate sufficient profits to allow the government to repay the loan.

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