Ted and Alice want to make sure that their children will inherit lots of money when they die, so that their children do not have to struggle the way they themselves did. Saving more in response to this is a ________ reason for saving.

Describe how each of the following changes would affect the equilibrium in the labor market in terms of the level of the real wage and quantity of employment in equilibrium:

(a) Increased immigration leads to higher labor supply at each real wage (b) The effort curve makes a parallel shift upward (c) Labor productivity increases (that is, the marginal product of labor increases at each level of employment).

If the Federal Reserve targets the money supply, and the money demand curve shifts to the left, then the Fed

A) cannot maintain the money supply target. B) can maintain the money supply target, but at a lower interest rate. C) can maintain the money supply target, but at a higher interest rate. D) can maintain the money supply target with no change in the interest rate.