In a pay-as-you-go social security system,everyone can be made better off only if
A) the population growth rate exceeds the real interest rate.
B) the real interest rate remains higher than the population growth rate.
C) the number of old households exceeds the number of young households.
D) the interest rate for borrowers is sufficiently below that of lenders.
E) it is preceeded by a fully funded system.
Correct Answer:
Verified
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
Q23: Why do consumers benefit from pay-as-you-go social
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
Q28: Moral hazard represents a problem for fully-funded
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