Solve clearly explanation is more important don't copy.

1)An auto insurance company issues policies only after carefully screening an applicant's driving record. Those who have had many violations and accidents are either rejected or are insured at much higher rates. This is to deal with the insurance problem of

a. Lack of economies of scale.

b. Moral hazard.

c. Adverse selection.

Increasing the public debt can be associated with

a. an expansionary fiscal policy.

b. an expansionary monetary policy.

c. a contractionary fiscal policy.

d. a contractionary monetary policy.

Increasing the debt ceiling

a. is tied to the increase in the CPI.

b. must be approved by Congress.

c. must be approved by the Federal Reserve Bank.

d. would have been opposed by John Maynard Keynes since his most important policy recommendation was to balance the budget.

e. both b) and d) are correct.