When someone with no health insurance buys a high deductible health insurance policy
A. the premium for the policy falls below what it would be without the deductible.
B. insurance for a large loss is present but small losses are not insured.
C. the moral hazard problem is reduced.
D. All of these are true.
Answer: D
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Assume that instead of having a federal income tax, the federal taxes are levied as a consumption tax based upon a flat rate of 10 percent of all that you consume
How would this tax be different from an income tax? Would you expect this tax to be progressive, proportional, or regressive? What do you think would happen to the amount that people save under such a tax scheme? Explain your answers.
If investors expect interest rates to fall significantly in the future, the yield curve will be inverted. This means that the yield curve has a ________ slope
A) steep upward B) slight upward C) flat D) downward