What is the effect of higher pension rates on the economy?
A)Higher pension rates increase pensioners' disposable income and lead to greater retail spending.
B)Higher pension rates reduce pensioners' disposable income and reduce retail spending.
C)Higher pension rates reduce pensioners' consumer awareness and stimulate spending.
D)Higher pension rates increase pensioners' consumer awareness and reduce trade.

Question

Quizplus · Accepted Answer

Higher pension rates provide pensioners with more disposable income, allowing them to spend more freely on goods and services. This increase in consumer spending can positively impact the economy by creating demand for products and services, leading to business growth and job creation.

What Is the Effect of Higher Pension Rates on the Economy