The government of Maupintania introduces a new insurance program that pays for 100% of unexpected catastrophic medical
Question:
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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Step by Step Answer:
a Extending this benefit to highincome households will affect precautionary savers those who had bee...View the full answer
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