A tax subsidy is involved in employer-financed health insurance because:

A. all working adults are covered by Medicare.
B. all working adults are covered by Medicaid.
C. employer payments for health insurance are not subject to income or payroll taxes.
D. corporations that provide health insurance pay lower corporate income tax rates.

Answer: C

Economics

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Which of the following policies is NOT in the Fed's monetary toolbox?

a. Buying government bonds b. Increasing the quantity of reserves c. Lending reserves to banks d. Issuing a bank run

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