Social Security _____.
A)reduces the incentive to save
B)increases the incentive to save
C)has no effect on saving
D)increases the incentive to save when population growth is falling and decreases the incentive to save when population growth is falling

Question

Quizplus · Accepted Answer

Social security reduces the incentive to save because individuals may feel they do not need to save as much for retirement since they will receive benefits from the government. This can result in individuals saving less overall.