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:

Small-Firm Anomaly

The historical observation that smaller firms, or those with a lower market capitalization, tend to outperform larger companies on a risk-adjusted basis.

January Effect

A seasonal increase in stock prices that often occurs in January after the sell-off for tax purposes in December.

Neglected

In financial contexts, this refers to assets or securities that are underfollowed or overlooked by investors and analysts.

Passive Portfolio Management

An investment strategy that tracks a market-weighted index or portfolio, minimizing buying and selling to reduce costs and turnover.