A shortfall of tax revenues at current rates relative to promised benefits for a government program is called
A) a personal retirement account.
B) an expected equity.
C) a promissory note.
D) an unfunded liability.

Question

Quizplus · Accepted Answer

An unfunded liability occurs when the tax revenues generated at current rates are insufficient to fund promised benefits for a government program, which can create a shortfall.

A Shortfall of Tax Revenues at Current Rates Relative to Promised