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A Sudden Escalation in the Utilization Rates And, Correspondingly, Medical

Question 14

Multiple Choice

A sudden escalation in the utilization rates and, correspondingly, medical expenditures for treatment of ischemic heart disease (a procedure usually covered by insurance) would immediately


A) benefit providers.
B) result in Ex Ante moral hazard.
C) reduce welfare loss.
D) benefit insurance companies.
E) increase insurance company profits in the short term.

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