Question

The government of Maupintania introduces a new insurance program that pays for 100% of unexpected catastrophic medical costs. Before this time, only low-income households had this benefit.
a. Describe an empirical test of the effects of this policy change on the savings of high-income households in Maupintania.
b. What do you expect to happen to the overall rate of savings in Maupintania?


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  • CreatedApril 25, 2015
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