If you save more because Social Security allows you to retire earlier than you would have retired had Social Security neither taxed you nor provided you with benefits, then this is referred to by economists as the
A. slovenly effect.
B. bequest effect.
C. asset substitution effect.
D. induced retirement effect.
Answer: D
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The financial crisis of 2007-2009 worsened after the failure of which firm?
A) General Motors B) Lehman Brothers C) Bear Stearns D) American International Group (AIG)
Given a constant rate of growth of real GDP, what would lead to an increasing real GDP per capita?
a. a rate of population growth that is less than the rate of growth of real GDP b. a rate of population growth that is greater than the rate of growth of real GDP c. an increase in the size of the labor force d. an increase in the capital stock
If changing the quantity produced from 10,000 to 10,001 causes total costs to increase by $15, the marginal cost at 10,000 must be $15
Indicate whether the statement is true or false
The short-run effects of government's financial rescue program and fiscal stimulus package helped the economy increase aggregate demand curing the Great Recession
a. True b. False Indicate whether the statement is true or false