Consider the Following Two Situations

Consider the following two situations. Nicole accepts a job where she will be driving in dangerous traffic, so she seeks auto insurance. After Braden buys health insurance, he visits the gym less frequently. Which of these person's actions illustrates moral hazard?

A) both Nicole's and Braden's
B) Nicole's but not Braden's
C) Braden's but not Nicole's
D) neither Braden's nor Nicole's

Correct Answer:

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