In a pay-as-you-go social security system, everyone can be made better off only if
A) the interest rate for borrowers is sufficiently below that of lenders.
B) the real interest rate remains higher than the population growth rate.
C) it is preceded by a fully funded system.
D) the population growth rate exceeds the real interest rate.
E) the number of old households exceeds the number of young households.
Correct Answer:
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Q3: In a fully-funded social security program
A)the young
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Q6: A collateral constraint captures the idea that
A)the
Q7: Limited commitment means
A)only governments can borrow.
B)there is
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