Examlex

Solved

Holding Other Factors Constant, If Employers Automatically Enroll Employees in Retirement

question 20

Multiple Choice

Holding other factors constant, if employers automatically enroll employees in retirement savings programs in order to overcome psychological barriers to saving, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.


Definitions:

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be consumed by anyone without reducing its availability to others.

Marginal Revenue

The additional revenue generated from selling one more unit of a good or service.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.

Externality

Actions of one party impose costs or benefits on a second party.

Related Questions