Preverse incentives
What will be an ideal response?
reward structures that lead to suboptimal outcomes by stimulating counterproductive behavior; for example, welfare—to the extent that it discourages work efforts—is argued to have perverse incentives.
Economics
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If the MPC is 0.8, then the MPS is
A) 0.2. B) 1. C) 5. D) 8.
Economics
Zero inflation
a. might be dangerous because it could lead to rapidly increasing prices. b. would limit the flexibility of the labor market and so could at times raise unemployment. c. would make it easy for the Central bank to create negative real interest rates. d. is impossible to achieve in the real world.
Economics