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A Fully Funded Social Security Program

Question 28

Multiple Choice

A fully funded social security program


A) solves the Ricardian equivalence problem.
B) works when the population growth rate exceeds the real interest rate.
C) redistributes income between generations.
D) is forced savings, but can work if the government cannot commit to bailing out destitute retirees.
E) is always better than a pay-as-you-go system.

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