Traditionally, the federal government provides disaster relief funds t

Traditionally, the federal government provides disaster relief funds to flood victims so that they can rebuild their homes after a major flood.

However, the government has recently denied requests to rebuild some homes that were situated in flood-prone areas. This action represents an attempt to ________ the moral hazard problem associated with building private homes in risky areas. A) enhance
B) mitigate
C) legalize
D) support

 

ANSWER

B

 

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