Multiple Choice
If households ignore effects on future generations, when a pay as you go social security system starts, the then elderly:
A) have a negative income effect on their consumption.
B) receive benefits that in present value is greater than the present value of their contributions to the system.
C) receive low returns on any taxes paid into the system.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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