Question

If Medicaid is expanded to cover a greater percentage of the population: the public debt will immediately increase. implicit liabilities will increase. implicit liabilities will decrease. implicit liabilities will be unaffected.

Answer 1

Answer: implicit liabilities will increase.

Explanation:

Implicit liabilities are incurred by government as a result of them having to take care of their citizens. Medicaid is one such liability.

If the government were to expand the percentage of people in the country that are to be covered by medical aid, this would mean that more Medicaid will be paid by the government which means that the implicit liabilities will increase.