
Why do consumers benefit from pay-as-you-go social security?
A) It keeps inflation in check as money is redistributed.
B) It is a better way than taxes to finance the government.
C) It forces people to save more than they would otherwise.
D) With sufficiently high population growth, many young contribute to the benefits of the old.
E) With sufficiently low population growth, the young can perpetually contribute more.
Correct Answer:
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Q18: For a consumer bound by the the
Q19: An interest rate spread is
A) the difference
Q20: When consumers lend at a lower rate
Q21: The committment problem that may make a
Q22: Social security is most likely to present
Q24: Consumer choice theory predicts that,with identical consumers,fully-funded
Q25: Consumer choice theory predicts that,with identical consumers,pay-as-you-go
Q26: In a fully-funded social security program
A) the
Q27: In a pay-as-you-go social security system,everyone can
Q28: Moral hazard represents a problem for fully-funded
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