When the Social Security System Enters Its Deficit Years and the Bonds

question 185

Multiple Choice

When the Social Security system enters its deficit years and the bonds held in the trust funds are drawn down,

• A) overall taxes will be reduced as the trust funds are used to pay benefits to retirees.
• B) the payroll taxes used to finance Social Security benefits can be reduced because the trust funds will be sufficient to pay the retirement benefits of the baby boom generation.
• C) income and other federal taxes will have to be raised (or additional funds will have to be borrowed) in order to redeem the bonds held by the trust fund.
• D) income taxes will have to be reduced in order to keep the revenues and expenditures of the Social Security system in balance.

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Definitions:

-plasia

A suffix used in medical terms to describe the formation, growth, or development of tissues or cells.

-blast

A suffix used in biology to denote an immature precursor cell or formative stage of development.

Asymetrical

Having parts that fail to correspond to one another in shape, size, or arrangement; lacking symmetry.

Anesthetize

The process of using drugs to induce a temporary state of insensitivity or unconsciousness for medical procedures.