The tax increases necessary to fund future Social Security and Medicare benefit payments would be
A)small,and have little effect on economic growth.
B)small,but could discourage work effort,entrepreneurship,and investment,thereby slowing economic growth.
C)large,but would have little effect on economic growth.
D)large,and could discourage work effort,entrepreneurship,and investment,thereby slowing economic growth.

Question

Quizplus · Accepted Answer

Large tax increases to fund future Social Security and Medicare benefit payments could discourage work effort, entrepreneurship, and investment, which may lead to a slower economic growth. This is because if individuals and businesses have to pay higher taxes, they may have less money available to invest, save, or spend on goods and services, which can reduce economic growth.

The Tax Increases Necessary to Fund Future Social Security and Medicare