Moral Hazard Represents a Problem for Fully-Funded Social Security Because

question 7

Multiple Choice

Moral hazard represents a problem for fully-funded social security because

• A)households invest in assets that are too safe.
• B)the government is likely to never pay out promised benefits.
• C)population growth remains below the real interest rate.
• D)population growth exceeds the real interest rate.
• E)households would invest retirement savings in risky assets.

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