A current worker may save more towards retirement so that he or she will have more to leave his or her children later. This altruistic motive is known as the
A. altruism effect.
B. bequest effect.
C. income effect.
D. savings effect.
B. bequest effect.
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Other things the same, when the interest rate rises
What will be an ideal response?
Exhibit 15-5 Balance sheet of Tucker National Bank Assets Liabilities Required reserves$ Checkable deposits$100,000 Excess reserves5,000 Loans 70,000 Total$100,000 Total$100,000 If all banks in the system shown in Exhibit 15-5 were identical to Tucker National Bank, the money multiplier for the system would be:
A. 4. B. 5. C. 10. D. 25.
The textbook authors claim
A) diabetics don't need insulin. B) diabetics don't want insulin. C) diabetics face no substitutes for insulin. D) diabetics can't find insulin at a fair price. E) none of the above.
In a centrally planned economy, the concept of marginal cost
A) is important if planners want to achieve their objectives at the lowest possible cost. B) is irrelevant because resources can be obtained by government decree. C) is irrelevant because socialist firms do not have to earn profits. D) is irrelevant if industries can be subsidized.