If you overhear a group of people talking about their plans to save for their retirement and one of them says that it causes them to save less and the other says they will save more, you would conclude
A. that both are rational, they just have different perspectives.
B. the person decreasing saving is rational and the other is irrational.
C. the person increasing saving is rational and the other is irrational.
D. neither are rational, Social Security affects no one's saving.
Answer: A
You might also like to view...
Refer to Table 2-2. Assume Billie's Bedroom Shop only produces pillows and blankets. A combination of 9 pillows and 21 blankets would appear
A) along Billie's production possibilities frontier. B) inside Billie's production possibilities frontier. C) outside Billie's production possibilities frontier. D) at the vertical intercept of Billie's production possibilities frontier.
Suppose the natural rate of unemployment is 5%, with full-employment output of $7000 billion. Use Okun's Law to calculate the level of national output if the unemployment rate is 7%
What will be an ideal response?
Throughout U.S. history, the debt-GDP ratio has jumped sharply higher during
A) cyclical expansions. B) stock market crashes. C) wars. D) Presidential election years.
Which of the following is a definition of velocity?
a. Velocity = value of final goods and services produced/money supply b. Velocity = real GDP/M c. Velocity = nominal GDP/real GDP d. Velocity = (P Q)/(M V)