The Commitment Problem That May Make a Forced Savings Social

question 24

Multiple Choice

The commitment problem that may make a forced savings social security program beneficial is best described by

• A) too much saving by households because the government cannot commit to providing zero retirement assistance.
• B) borrowers are unable to commit to a high real interest rate.
• C) young households cannot commit to participating when they are old.
• D) the government cannot commit to providing benefits when old.
• E) under saving by households because the government cannot commit to providing zero retirement assistance.

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Data or information about an individual that can be used to identify them, including name, address, or financial details.

Credit Information

Data about an individual’s or company’s credit history and current credit status, used by lenders to make lending decisions.

Crime

A violation of the law that is punishable by the state or other authority.

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