The bequest effect tends to
A. cause an increase in savings.
B. cause a decrease in savings.
C. cause people to retire early.
D. cause people to retire later.
Answer: A
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Excessive volatility refers to the fact that
A) stock returns display mean reversion. B) stock prices can be slow to react to new information. C) stock price tend to rise in the month of January. D) stock prices fluctuate more than is justified by dividend fluctuations.
_____ when net taxes are reduced.
What will be an ideal response?
Answer the next question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent.AssetsLiabilities & Net WorthReserves$50,000 Checkable Deposits$120,000Loans75,000 Stock Shares130,000Securities25,000 Property100,000?Refer to the above data. This bank can make new loans of up to:
A. $32,000. B. $41,000. C. $50,000. D. $27,000.
Today, the most common exchange rate arrangement in the world is
A) the fixed exchange rate system. B) the gold standard system. C) the managed floating system. D) the freely floating exchange rate system.