All of These Statements About Pension Trends Are True EXCEPT

question 195

Multiple Choice

All of these statements about pension trends are true EXCEPT

• A) many companies stopped offering pension plans because average life expectancy of retirees has increased.
• B) tightening state and local government budgets have made it more difficult to fulfill long-term pension obligations to public employees.
• C) defined contribution plans-such as a 401K-provide retirees with more financial security than the pension plans that they replaced.
• D) some cities have declared bankruptcy and became unable to honor their pension commitments.

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Definitions:

Recession

A temporary phase of economic downturn characterized by a decrease in commerce and industrial production, typically recognized by a drop in Gross Domestic Product (GDP) for two consecutive quarters.

Quantity Theorists

Economists who believe that the amount of money in circulation is the primary influencing factor on overall levels of prices and inflation in an economy.

Increase in M

An increase in the money supply, referring to the total amount of money within a specific economy available for purchasing goods or services.

PQ Increase

A rise in the product of price level and quantity of goods and services produced, indicating growth in the value of economic output.