The Main Macroeconomic Implication of a Pay- As- You- Go

question 9

Multiple Choice

The main macroeconomic implication of a pay- as- you- go social securtiy system is:

• A) total saving decreases and capital accumulation decreases.
• B) no effect on total saving and capital accumulation decreases.
• C) no effect on total saving and no effect on capital accumulation.
• D) total saving increases and capital accumulation increases.
• E) no effect on total saving and capital accumulation increases.

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Definitions:

Conditioned Stimulus (CS)

A previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Response (UR)

An unlearned reaction that is automatically elicited by the unconditioned stimulus.

Unconditioned Stimulus (US)

An unconditioned stimulus is any stimulus that naturally triggers a reflexive response without the need for prior learning.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.