If Households Ignore Effects on Future Generations, a Pay as You

question 18

Multiple Choice

If households ignore effects on future generations, a pay as you go social security system:

• A)decreases consumption.
• B)reduces the capital stock in the long run.
• C)raises national saving.
• D)all of the above.

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Definitions:

Interest

The cost of borrowing money, usually expressed as a percentage of the amount borrowed over a specific period of time.

Fee Simple Absolute

A type of freehold ownership where the owner has the greatest possible aggregation of rights, privileges, and power over a piece of property.

Ownership Interest

This denotes the rights and claims an individual or entity has over a property or investment.

Real Property

Land, and generally whatever is erected or growing upon or affixed to land, including buildings and crops.