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 ________.

• A)increase; increase
• B)increase; not change
• C)increase; decrease
• D)decrease; increase

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