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Evaluate the Following Observation: "It Appears That the Economy Is

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Essay

Evaluate the following observation: "It appears that the economy is suffering from a credit crunch. Borrowing by households and small businesses has declined much more sharply than has borrowing by large businesses."


Definitions:

Wage Replacement

A form of benefit that compensates for income lost due to temporary disability, unemployment, or other reasons preventing a person from working.

Health Maintenance Organization (HMO)

A type of managed care operation that is typically set up as a for-profit corporation with salaried employees; group insurance that entitles members to services provided by participating hospitals, clinics, and providers.

Group Insurance

An insurance plan that provides coverage to a group of individuals, typically employees of an organization, under a single policy.

Participating Hospitals

Medical facilities that agree to provide services under certain insurance plans or health programs.

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