A Low Deductible Will Yield a ________

question 27

Multiple Choice

A low deductible will yield a ________.

• A) Higher premium
• B) Lower premium
• C) The deductible has no impact on the premium.
• D) Disaster
• E) Savings in all cases

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Definitions:

Consumption Function

A macroeconomic term that describes the relationship between total consumption and gross national income.

Aggregate Income

Aggregate Income is the total income earned by all individuals or entities in the economy within a specific period.

Consumption Function

An economic formula representing the relationship between total consumption and gross national income, indicating how income changes affect spending habits.

Aggregate Income

The total income earned by all factors of production in an economy over a specific time period, including wages, rents, interest, and profits.