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When Considering the Adverse-Selection Problem in the Case of Medical

Question 58

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When considering the adverse-selection problem in the case of medical insurance,as the cost of insurance rises


A) healthy people might reduce their coverage while unhealthy people will maintain their coverage.
B) unhealthy people might reduce their coverage, while healthy people will maintain their coverage.
C) both healthy and unhealthy people will likely reduce their coverage.
D) both healthy and unhealthy people will likely maintain their coverage.

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