Consider a situation where there is a huge infl ux of inexperienced, reckless drivers into your area.

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Consider a situation where there is a huge infl ux of inexperienced, reckless drivers into your area. Assuming this increase is large enough to infl uence the market in which your insurance company operates, explain why the price of your car insurance policy will go up even though your driving record hasn’t changed.

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Money Banking And Financial Markets

ISBN: 9780073375908

3rd Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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