The effect of Social Security on personal savings is important because
A)The level of savings determines the pool of investment funds
B)Savings are necessary to finance the Social Security Trust Fund
C)Personal savings are negatively related to economic growth
D)Savings are a major source of income for all elderly households
E)The level of savings

Question

Quizplus · Accepted Answer

Social Security can influence personal savings because individuals may rely on it as a source of income in retirement, rather than saving and investing their own funds. This can affect the pool of investment funds available in the economy, potentially limiting the amount of capital available for economic growth and development. Therefore, the level of personal savings is important for determining the investment capacity of a country's economy.

The Effect of Social Security on Personal Savings Is Important