Tax preferences for Individual Retirement Accounts will, ceteris paribus,
A. Increase the saving rate and increase the productive capacity.
B. Increase the investment in human capital and reduce the productive capacity.
C. Increase the saving rate but not the productive capacity.
D. Decrease the saving rate and reduce the productive capacity.
Answer: A
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In the above table, the inflation rate between 2012 and 2013 is approximately
A) 0.9 percent. B) 1 percent. C) 10 percent. D) 100 percent.
When aggregate expenditure is less than? GDP, which of the following is? true?
A) There was an unplanned increase in inventories.
B) Households bought more new homes than they anticipated.
C) Firms spent more on capital goods than they anticipated.
D) All of the above must be true when aggregate expenditure is less than GDP.
In order for a firm to receive monopoly profits, there must be
A) homogeneous products. B) barriers to market entry. C) mutual interdependence among firms. D) free entry and exit to the market.
Microeconomics examines the
A. total household expenditures. B. decision making undertaken by individual households. C. aggregate business spending. D. behavior of the economy as a whole.