According to a Model of Intergenerational Equity,if Future Generations Are

question 30

Multiple Choice

According to a model of intergenerational equity,if future generations are expected to be better off than the current generation,transfers should

• A) go from the richer generation to the poorer generation.
• B) not be done at all.
• C) go from the poorer generation to the richer generation.
• D) be weighted by increases in the inflation rate.

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Definitions:

Economic Growth

Growth in the inflation-corrected value of goods and services that an economy outputs over time.

Social Security

The U.S. social insurance program financed by a federal payroll tax that provides disability, retirement, and death benefits.

National Debt

The total amount of money that a country's government has borrowed, by various means, to finance its spending that exceeds tax revenues.

Deficit

An economic condition when a government's expenditures exceed its revenues, leading to borrowing or spending reserves.