Holding other factors constant, if employers automatically enroll employees in retirement savings programs in order to overcome psychological barriers to saving, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.
A. increase; decrease
B. decrease; increase
C. increase; increase
D. increase; not change
Answer: B
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Explain why crossing indifference curves would lead to a logical inconsistency
What will be an ideal response?
Consider a BMW automobile plant. If the price of BMWs increase by 10 percent and the money wage rate and other costs ________, there will be ________
A) increase by 10 percent; an increase in BMWs profits B) do not change; an increase in BMW's production and profit C) increase by 10 percent; an increase in BMWs production D) do not change; no change in production
A year's tuition at a state university cost $250 in 1972 when the CPI equaled 0.418. The cost of a year's tuition at the same state university cost $3,000 in 2005 when the CPI equaled 1.68. The real cost of tuition between 1972 and 2005:
A. decreased. B. may have either increased or decreased. C. remained constant. D. increased.
Accounting profits at a firm's break-even point are
A. negative. B. zero. C. positive. D. indeterminate since we need to know what demand is.