In the life-cycle hypothesis, people are assumed to have a consumption pattern that leads them to dissave
A) at no point in their life.
B) in the working years up to retirement.
C) in their retirement years.
D) in every year of their life.
C
You might also like to view...
Ceteris paribus, deficit spending results in higher interest rates, which can
A) ultimately have a positive impact on productivity gains and society's standard of living. B) accelerate growth in investment spending. C) crowd out private investment. D) increase the wealth of future generations.
As a whole, nations are better off after trade and specialization because
A) nations can consume along their production possibilities curve, which is outside of their consumption possibilities curve. B) nations can consume along their consumption possibilities curve, which is inside of their production possibilities curve. C) nations experience an inward shift of their production possibilities curve. D) nations can consume along their consumption possibilities curve, which is outside of their production possibilities curve.
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is a decrease of financial international capital flows into a nation:
a. The real risk-free interest rate rises and the quantity per time period falls. b. The real risk-free interest rate rises and the quantity per time period rises. c. The real risk-free interest rate falls and the quantity per time period falls. d. The real risk-free interest rate rises and the quantity per time period does not change. e. The real risk-free interest rate rises and the quantity per time period is uncertain.
Granting a pharmaceutical company a patent for a new medicine will lead to (i) a product that is priced higher than it would be without the exclusive rights. (ii) incentives for pharmaceutical companies to invest in research and development. (iii) higher quantities of output than without the patent
a. (i) and (ii) only b. (ii) and (iii) only c. (i) and (iii) only d. (i), (ii), and (iii)