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

question 52

Multiple Choice

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

• A)raises current national savings.
• B)raises investment.
• C)reduces the future capital stock.
• D)all of the above.

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Definitions:

Bank Loan

A type of loan provided by banks to individuals or businesses with an agreement to repay the borrowed amount along with interest over a specified period.

Operating Activities

business activities directly related to producing and delivering goods and/or services, which are the primary source of revenue for the company.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted into cash in the upcoming year.

Borrowing

the act of obtaining funds from another party, often a financial institution, with the promise of repayment plus interest at a future date.