As the large baby-boom generation moves into the retirement phase of life, this will
A) make it easier for the federal government to finance its budget deficit because the baby-boomers will be the wealthiest generation of retirees in American history.
B) make it easier for the federal government to reduce spending because senior citizens do not spend much on consumption.
C) make it more difficult for the federal government to finance its budget deficit because the retirement of the baby-boomers will mean more expenditures for Social Security and Medicare.
D) not affect the federal deficit because there is no reason to expect that either federal spending or tax revenues will be influenced by the retirement of the baby-boomers.

Question

As the large baby-boom generation moves into the retirement phase of life, this will
A) make it easier for the federal government to finance its budget deficit because the baby-boomers will be the wealthiest generation  of retirees in American history.
B) make it easier for the federal government to reduce spending because senior citizens do not spend much on consumption.
C) make it more difficult for the federal government to finance its budget deficit because the retirement  of the baby-boomers will  mean more expenditures for Social Security and Medicare.
D) not affect the federal deficit because there is no reason to expect that either federal spending or tax revenues will be influenced by the retirement of the baby-boomers.

Quizplus · Accepted Answer

The retirement of the baby-boomers will mean more expenditures for Social Security and Medicare, making it more difficult for the federal government to finance its budget deficit. This is because the government will need to provide for the increased costs associated with the aging population, including healthcare and retirement benefits, which will put a strain on the federal budget.

As the Large Baby-Boom Generation Moves into the Retirement Phase