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Cerrena [4.2K]
3 years ago
7

Describe the difference between a 401(k) plan and an Individual Retirement Account.

Business
2 answers:
natita [175]3 years ago
8 0

The difference between a 401(k) plan and an individual retirement account is that almost anyone can open up an IRA, but only employees can enroll in 401(k) plans. The amount you can contribute to a 401(k) is larger than what you can contribute to an IRA. A 401(k) plan often has a feature called company match, where as an IRA does not.

nadya68 [22]3 years ago
4 0
401(k) is an employer-provided plan, IRA isn't.
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Answer:

A greater saving will reduce the impact of the multiplier.

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A multiplier generally refers to the factor that amplifies or increase the initial change of something else.

In economics, multiplier refers how change in spending or saving results into a larger change in local output and income.

Since addition of marginal propensity to consume (MPC) and marginal propensity to save (MPS) is equal to 1, the formula for calculating a multiplier can be stated as:

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From the question therefore, when MPS = 0.10, we have:

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Since 5 is less than 10, a greater saving will therefore reduce the impact of the multiplier.

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3 years ago
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