Multiple Choice
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 preceded by a fully funded system.
Correct Answer:
Verified
Correct Answer:
Verified
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