If the US Economy Grew Rapidly in the Future, Would This Eliminate

question 167

Multiple Choice

If the U.S. economy grew rapidly in the future, would this eliminate the long run deficit of Social Security?

• A) No; future Social Security benefits are tied to nominal wages and therefore increases in real incomes will also increase the future retirement benefits.
• B) Yes; a rapid real growth rate would increase tax revenues without increasing the real benefit levels of future recipients.
• C) Yes, more rapid growth would lead to inflation and this would help eliminate the system's long run deficit.
• D) Yes, but only if the rapid growth led to a substantial increase in net exports.

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Definitions:

Linear Rate

In the context of springs, a linear rate refers to a constant rate of compression or extension, meaning the force required to compress or extend the spring is consistent throughout its movement.

Variable Rate

An interest or finance charge rate that can change over the period of the loan or credit agreement, often tied to an index or benchmark.

Coil Springs

Mechanical devices that can compress or extend to absorb impact or maintain force between contacting surfaces.

Hub Carriers

Component of a vehicle's suspension system that holds the wheel bearing and is mounted on the suspension.