According to the Reading by Thurow, Reducing Government Support for Older

question 5

Multiple Choice

According to the reading by Thurow, reducing government support for older adults so that they must rely on more of their own resources may have which of the following effects?

• A) The young may have to shoulder some of the costs of taking care of their parents
• B) There may be smaller inheritances for young people
• C) The federal government will raise taxes
• D) All of the above
• E) A and B above

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Definitions:

Par Value

The face value of a bond or stock, as specified by the issuing company, which is the minimum price at which the securities can be issued initially.

Retirement

The process of removing an asset from service after its useful life has ended, often involving its disposal or sale.

Gain or Loss

The financial result from a transaction that leads to an increase (gain) or decrease (loss) in the asset value of a company.

Straight-line Amortization

A method of evenly spreading out the cost of an intangible asset over its useful life.