One Proposed Solution to the Funding Problems Faced by Social

question 118

Multiple Choice

One proposed solution to the funding problems faced by Social Security and Medicare is to increase the retirement age from 67 to 70.Although this would mean billions of dollars in savings for these federal programs,an unintended consequence may be

• A) a decrease in life expectancy.
• B) an increase in the unemployment rate.
• C) an increased number of elderly people in the workforce.
• D) less incentive for people to work longer.
• E) an increased incentive for people to work longer.

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Definitions:

Interest Note

A promissory note that includes terms for interest payments in addition to the principal amount loaned.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond.

Promissory Note

A financial instrument comprising a written promise by one party to pay a certain amount of money to another party at a specified time or on demand.

Dishonored

A term typically used in banking and finance to refer to a payment instrument, such as a check or promissory note, that has been refused or rejected by the payer's bank due to insufficient funds or other reasons.