Author Question: A financial market where economic agents meet in one central location is known as ________. A) an ... (Read 45 times)

mydiamond · **on:** Jun 30, 2018

A financial market where economic agents meet in one central location is known as ________.

A) an over the counter market
B) an exchange
C) a bond market
D) a money market

Question 2

Advances in medical practice have increased both expected lifespans and medical expenditures. What does the life-cycle hypothesis predict as the macroeconomic consequences?

What will be an ideal response?

SVictor · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

B

Answer to Question 2

An extended lifespan implies more years in retirement. The high cost of medical care implies that those years will, on average, be more expensive. For both reasons, workers will increase saving now (reduce consumption) and accumulate more wealth before retirement.