A Pay as You Go Social Security System Only Increase

question 59

Multiple Choice

A pay as you go social security system only increase consumption and reduces investment, if:

• A)households leave bequests.
• B)if households neglect the adverse affects on their descendants.
• C)if the planning horizon is overlapping generations.
• D)households increase their savings.

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Definitions:

Extended Family

An extended family unit that encompasses not just the immediate parents and children, but also includes grandparents, aunts, uncles, and various other kin.

Single-Parent Family

A family that consists of only one parent and his or her children.

Nuclear Family

A family unit consisting of two parents (mother and father) and their children (biological or adopted), considered the smallest, basic social unit.

Military Families

Families in which one or more members are serving or have served in the armed forces, often facing unique challenges such as frequent relocations and deployments.