Based on the graph for saving incentives, when a new tax law makes the supply shift from S1 to S2, the real interest rate would ______.
a. remain at r1
b. remain at r2
c. rise from r2 to r1
d. drop from r1 to r2
d. drop from r1 to r2
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Which of the following can be considered an income risk?
a. Recession causing loss of pay to employees working in a particular industry b. Fall in employee turnover affecting company profits c. Economic growth resulting in demand-pull inflation d. Stock market boom encouraging investment in risky assets
An outward shift of the money demand function indicates an increase in the market rate of interest and hence a decrease in the level of investment in the economy
a. True b. False Indicate whether the statement is true or false
In her book on the American work week, economist Juliet Schorr argues that Americans work too much. Her argument may be interpreted as concluding that this behavior
a. increases GDP but decreases well being. b. increases GDP and increases well-being. c. decreases GDP and decreases well being. d. decreases GDP but increases well being.
Unemployment insurance causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment
a. True b. False Indicate whether the statement is true or false