Which of the Following Would Transfer Wealth from Old to Young

question 147

Multiple Choice

Which of the following would transfer wealth from old to young?

• A)Increases in the budget deficit
• B)Decreased building of highways and bridges
• C)More generous education subsidies
• D)Indexation of Social Security benefits to inflation

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Definitions:

Induced Consumption

Consumption that varies directly with income, indicating how consumer spending increases as income rises.

Disposable Income

The wealth households have at their disposal for spending and saving post-income tax evaluations.

Disposable Income

Funds designated for households' spending and saving ventures post-income tax calculation.

Disposable Income

Economic resources that households can utilize for spending and saving actions after income tax deductions.