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.

---

Definitions:

Capital Shares

Equity securities that represent ownership in a corporation, entitling the shareholder to a share of the company's profits.