The effects of tax incentive programs such as IRAs and 401(k) accounts suggest that these government programs designed to increase saving lead to
A) a decrease in the private capital stock.
B) decreased labor productivity.
C) an increase in the standard of living.
D) an increase in the real interest rate.
C
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When consumption spending is greater than disposable income, we know with certainty that we have
A) dissaving. B) negative net investment. C) excess thrift. D) positive savings.
We are using resources efficiently if we can produce more of one good without producing less of some other good that we value more highly
Indicate whether the statement is true or false
If you agree to a long-term loan at a specified nominal rate of interest and inflation turns out to be higher than was anticipated,
A) the nominal rate of interest falls. B) the nominal rate of interest rises. C) the real rate of interest falls. D) the real rate of interest rises.
If Delta Airlines lowers the P for its round trip tickets between Des Moines and Orlando, it will increase its TR (= total revenue) or total $ sales of those tickets if the Eo of D (ignoring the sign) for those tickets is:
a) 0 b) greater than 1 c) = 1 d) < 1 e) inelastic