Adverse selection occurs when a fully insured person fails to ...

[luminitza]

Adverse selection occurs when a fully insured person fails to take as many precautions against risk as she would if uninsured.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Which of the following would move the economy up and to the left along a short run Phillips Curve?
 a. Increases in the discount rate and increases in the interest rate the Fed pays on bank reserves.
 b. Increases in taxes by the federal government combined with reductions in government purchases of goods and services.
  c. Decreases in the fed funds interest rate target adopted by the Fed.
 d. An increase in the expected rate of inflation.

[sabina576]

Answer to Question 1

False

Answer to Question 2

c