Retirement Savings Accounts, Such as IRAs, Help Increase Economic Growth

question 6

Multiple Choice

Retirement savings accounts, such as IRAs, help increase economic growth because

• A)they encourage international trade.
• B)savings finances investment.
• C)people have an incentive to work harder and longer hours to save for the future.
• D)government invests them.
• E)they keep the interest rates high.

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Definitions:

Base Wages

The initial or fundamental salary paid to an employee before any bonuses, benefits, or overtime are accounted for.

Lump-sum Merit Pay

A one-time payment given to an employee as a reward for performance, rather than a continuous salary increase.

Base Salary Levels

The foundational rate of pay before bonuses, benefits, or allowances are added, usually determined by role complexity and market rates.

Profit-sharing Plans

Compensation schemes where employees receive a share of the company's profits, typically in the form of bonuses or equity.