In a frictionless world
A) Fully funded social security must necessarily make everyone better off, as it provides for retirement.
B) Fully-funded social security is a constraint on private saving behavior, and therefore cannot make anyone better off.
C) Fully funded social security is always preferred to pay-as-you-go social security.
D) Fully funded social security is more efficient, because it is a private program instead of a government program.
B
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If the marginal propensity to consume (MPC) is 0.8, the spending multiplier will be
A) 0.2. B) 1.25. C) 4.0. D) 5.0.
The Contract Labor Law, which was passed in 1864 and repealed in 1868,
a. authorized labor contracts made abroad between American companies and foreign workers. b. resulted in a large increase in European immigration to the U.S. c. was supported by American wage earners. d. authorized workers to strike and engage in collective bargaining.
Suppose a banking system has a required reserve ratio of 0.10. How much can the money supply increase in response to a $500 increase in excess reserves for the whole banking system?
A. $4,500. B. $5,000. C. $50. D. $500.
Refer to Figure 23.6 for a perfectly competitive firm. Given the current market price, we expect to see
A. Firms exit from the industry, driving down the market price. B. Firms enter the industry, driving down the market price. C. Firms exit from the industry, driving up the market price. D. No change in the number of firms in the industry and no change in the market price.