Generational accounting shows that the present value of the governmentʹs commitments to pay benefits are _________the present value of its taxes.
A) not comparable to
B) less than
C) equal to
D) greater than

Question

Quizplus · Accepted Answer

Generational accounting shows that the present value of the government's commitments to pay benefits to future generations, such as Social Security and Medicare, are greater than the present value of taxes it will collect from those same future generations. This means that the current generation is effectively passing on a financial burden to future generations.

Generational Accounting Shows That the Present Value of the Governmentʹs