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 preceeded by a fully funded system.
Correct Answer:
Verified
Correct Answer:
Verified
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Q2: A default premium is the interest rate
Q3: If consumers use their house as collateral
Q4: Social security is most likely to present
Q5: When consumers lend at a lower rate
Q7: If the proportion of bad borrowers increases,<br>A)
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