Which of the Following Can Decrease Tax Rates Necessary to Pay

question 19

Multiple Choice

Which of the following can decrease tax rates necessary to pay pensions for a pay-as-you-go pension system?

• A)An increase in replacement rates
• B)A decrease in the retirement age
• C)An increase in the size of the workforce
• D)An increase in the number of retirees

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Definitions:

Minimum Required Rate Of Return

This term refers to the lowest return that investors expect for an investment, considering the risk involved.

Operating Expenses

Non-production costs incurred by a business in the process of earning revenues, such as selling, general, and administrative expenses.

Average Operating Assets

Average operating assets represent the average value of the assets used in the normal operations of a business within a specific period, often used in calculating return on investment metrics.

Minimum Required Rate Of Return

The lowest return that investors or managers expect to receive on an investment to make it worthwhile.