What is the likely effect of introducing a "nudge" in the form of default enrollment in a retirement savings plan on employees' participation rates? A. Participation rates will decrease. B. Participation rates will remain the same. C. Participation rates will significantly increase. D. Participation rates will fluctuate unpredictably.

Scenario 21-3  Scott knows that he will ultimately face retirement. Assume that Scott will experience two periods in his life, one in which he works an earns income, and one in which he is retired and earns no income. Scott can earn $250,000 during his working period and nothing in his retirement period. He must both save and consume in his work period with an interest rate of 10 percent on savings.  Refer to Scenario 21-3. If the interest rate on savings increases,  a. Scott will always increase his savings in the work period.  b. Scott will increase his savings in the work period if the income effect is greater than the  substitution effect for him.  c. Scott will decrease his savings in the work period if the income effect is greater than the substitution effect for him.  Od. Scott will decrease his savings in the work period if the substitution effect is greater than the income effect for him.  C

suppose you discover a treasure of $10 billion in cash. a. Is this a real or financial asset? b. Is society any richer for the discovery? c. Are you wealthier? d. Can you reconcile your answers to (b) and (c)? Is anyone worse off as a result of the discovery?

10. What is the present value of a perpetuity of $100 if the appropriate discount rate is 7%? If interest rates in general were to double and the appropriate discount rate rose to 14%, what would happen to the present value of the perpetuity?

Define Purchase of Investment.

Kevin's reference dependent utility over money is y and effort is E, refer to the: instantaneous utility function:      rt: reference point for wealth, which demonstrated his recent wealth Kevin does not have from money but from gains and losses of money instead. There is no discounting, and assume that Kevin's current wealth from his job is 0. Kevin is thinking about a new role at work which allows him to increase his income by $1000 per period for two periods, counting from the current period, which is t = 0. He must undergo a training which require an effort of EO = 3500 at that value of alpha, how much ultility would Kevin lose relative to his non-projection-biased preferences if she took the position 1000 250 500 750