Which of the Following Statements Is True

question 32

Multiple Choice

Which of the following statements is true?

• A)Franklin Roosevelt had little faith that public opinion would preserve the Social Security program,and expected it to be dismantled within a few decades.
• B)Public opinion on the usefulness of the Social Security system tends to swing back and forth dramatically with the health of the national economy.
• C)George W.Bush attempted to privatize aspects of social security,only to back down in the face of determined resistance.
• D)Franklin Roosevelt attempted to increase the size of the Social Security system,but backed down in the face of strong public opinion against any expansion.
• E)Ronald Reagan refused,against the wishes of his party,to propose reform of the Social Security system,because he knew public opinion would oppose it.

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Definitions:

Aggressive Assumption

An optimistic and sometimes risky assumption used in financial forecasting or project planning, often involving higher revenues or lower costs than may actually be realistic.

Terminal Values

The value of an investment or project at the end of a forecast period, projecting its future cash flows beyond this period into perpetuity.

Uncertainty

refers to situations where the outcomes or future events are unknown or cannot be predicted with certainty.

Infinite Projections

Speculative forecasts that extend indefinitely into the future, often used in theoretical models and not typically applicable in practical financial analysis.