Generational Equity Argues for the Balance Between the Needs and Interests

question 39

Multiple Choice

Generational equity argues for the balance between the needs and interests of members of different generations. There is a fear that as U.S. society ages:

• A) too many young people will have decreased expectations for their own retirement
• B) working people will bear the burden of those who do not work
• C) Social Security will run out and there will be money for only the aged
• D) Social Security will not privatize, leaving the younger generation without a future

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Definitions:

Disposable Income

The financial stipend available to households for spending and saving endeavors after income taxes are considered.

Autonomous Consumption

The level of consumption expenditure that occurs when income levels are zero, reflecting the basic level of consumption that does not depend on current income.

APS

An acronym for Average Propensity to Save, which is the ratio of savings to the total net disposable income.

Total Saving

The sum of personal, business, and government savings within an economy.