The main macroeconomic implication of a fully funded social security system is:
A) no effect on total saving and capital accumulation increases.
B) no effect on total saving and capital accumulation decreases.
C) no effect on total saving and no effect on capital accumulation.
D) total saving increases and no effect on capital accumulation.
E) total saving decreases and no effect on capital accumulation.

Question

Quizplus · Accepted Answer

In a fully funded social security system, individuals save for their own retirement, which means that the system does not inherently change the total level of saving or capital accumulation in the economy.

The Main Macroeconomic Implication of a Fully Funded Social Security