The amount of money paid to a retiree from a defined contribution plan depends on how well investments perform.
Answer the following statement true (T) or false (F)
True
Defined contribution plans require employees, and usually employers as well, to put money each month into an account, which the employer then invests. The actual monthly payment to the retired worker depends on how the investment does over time.
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The costs of inflation that arise from trying to reduce cash holdings are known as
A) diminishing costs. B) menu costs. C) chain-index costs. D) shoe leather costs.
Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents
A) a decrease in quantity demanded. B) an increase in demand. C) an increase in quantity demanded. D) a decrease in demand.
Why are public goods a source of market failure?
What will be an ideal response?
The long-standing debate over rules versus discretion in macroeconomics centers on the following statement ________
A) "discretionary policy can lead to bad long-run outcomes but rules lack flexibility in the short-run" B) "the speed with which the self-correcting mechanism in the economy acts is in question" C) "the speed with which unemployment tends to disappear is debatable" D) all of the above E) none of the above