Why do consumers benefit from pay-as-you-go social security?
A) It keeps inflation in check as money is redistributed.
B) It is a better way than taxes to finance the government.
C) It forces people to save more than they would otherwise.
D) With sufficiently high population growth, many young contribute to the benefits of the old.
E) With sufficiently low population growth, the young can perpetually contribute more.
Correct Answer:
Verified
Q23: In a fully-funded social security program
A) the
Q24: The commitment problem that may make a
Q26: For a consumer bound by the collateral
Q27: If the collateral constraint does not bind,
Q28: A fully funded social security program
A) solves
Q31: Credit market frictions were important during the
Q31: Consumer choice theory predicts that, with identical
Q32: For a consumer not bound by the
Q33: Consumer choice theory predicts that, with identical
Q34: In a pay-as-you-go system,
A) the young transfer
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