Moral hazard represents a problem for fully-funded social security because
A) the government is likely to never pay out promised benefits.
B) households invest in assets that are too safe.
C) population growth remains below the real interest rate.
D) households would invest retirement savings in risky assets.
E) population growth exceeds the real interest rate.
Correct Answer:
Verified
Q23: In a fully-funded social security program
A) the
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
Q29: Why do consumers benefit from pay-as-you-go social
Q31: Consumer choice theory predicts that, with identical
Q31: Credit market frictions were important during the
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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